Net Profit is the excess of income over expenses. In other words, it is the amount of money a company earns after deducting all the expenses incurred to generate that income. It takes into account all the revenue earned by a business and all the expenses incurred to generate that revenue. Net profit is an important indicator of a company's financial health and profitability. It is often used to measure a company's performance over a given period, and it is the basis for calculating taxes, dividends, and retained earnings.