Net Profit refers to the total revenue earned by a company after all expenses have been paid. It is calculated by subtracting all costs and expenses from the total income generated by the business during a specific period, usually a year or a quarter. The net profit indicates how much money the company has made after accounting for all of its operating expenses such as rent, salaries, utilities, taxes, insurance, supplies, marketing costs and other overheads. A positive Net Profit means that the business is profitable while a negative Net Profit indicates that the business is not generating enough revenue to cover its expenses and may require further analysis or restructuring to improve its financial position.