Profit is just revenue minus expenses โ€“ in other words, all of the money that a company takes in minus all of the money that it pays out. Profit is basically how much money a company actually makes โ€“ if I sell you a book for $10 but it cost me $7 to buy it and $6 to ship it to you, I havenโ€™t actually made any money (Iโ€™ve actually made a loss), despite bringing in $10 in revenue. Profit is also sometimes referred to as a companyโ€™s โ€œbottom lineโ€.

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