Net profit, also known as net income or net earnings, is a company's total earnings or profit after all expenses, taxes, and other costs have been deducted from its total revenue. It is calculated by subtracting the company's total expenses from its total revenue. Net profit is an important measure of a company's financial performance and is often used to evaluate the profitability of a business. It is typically reported on a company's income statement and is one of the factors used by investors and analysts to determine the value of a company's stock.