Profit

Definition

Profit is the financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity. It measures the financial success of a company over a specific period.

Related terms

Revenue:

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Expense: Expenses are the costs incurred in the process of generating revenues, including operational costs like rent, salaries, and utilities.

Gross Margin:

The difference between sales revenue and cost of goods sold before accounting for certain other costs, indicating how efficiently a company uses its resources to produce goods