Profit, also known as net income or earnings, is the financial gain or excess of revenues over expenses earned by a business or individual during a specific period, such as a quarter or fiscal year, after deducting all costs, taxes, and operating expenses. Profit is a key performance indicator that measures the efficiency, profitability, and sustainability of a company's operations and reflects its ability to generate positive returns for its stakeholders, including shareholders, employees, and creditors. Profitability is essential for businesses to survive, grow, and reinvest in future operations, investments, and expansion initiatives. There are various types of profit, including gross profit, operating profit, and net profit, each calculated at different stages of the income statement and reflecting different components of the company's revenue and cost structure. Gross profit represents the difference between total revenue and the cost of goods sold (COGS), indicating the profitability of core business operations. Operating profit, also known as earnings before interest and taxes (EBIT), reflects the company's profitability from its primary operating activities before accounting for interest and taxes. Net profit, or bottom-line profit, is the final amount of profit remaining after deducting all expenses, taxes, and interest payments from total revenue, representing the company's ultimate profitability and financial performance.