Net profit is the amount of money a business earns after all expenses, taxes, and costs have been deducted from its total revenue. It is a key indicator of a company's financial health and profitability. A positive net profit means the business is making money, while a negative net profit indicates a loss. Calculating net profit involves subtracting total expenses from total revenue. This figure is often reported on a company's income statement and is crucial for investors and stakeholders to assess the company's performance. Understanding net profit helps businesses make informed decisions about growth and investment.