Profit

Profit means the money left after a business subtracts its costs and expenses from its revenue. In simple terms, profit shows how much money a business actually keeps. Profit is important because it helps show whether a business is financially healthy and sustainable. When profit rises, a company may have more money to invest, hire workers, pay dividends, or grow. For example, if a company earns $1 million in revenue and spends $700,000 on costs and expenses, its profit is $300,000. Profit is not the same as revenue. Revenue is the money coming into a business, while profit is what remains after costs and expenses are paid.