what are profits
Profit Basics. Profit is the long-term objective of any for-profit business. Profit is the net income of the business. In general, profit equals revenue less expenses. However, companies typically calculate multiple measures of profit on an income statement. Gross profit shows the total revenue minus the variable costs, or cost of goods sold. Operating income and non-operating activities are added or subtracted to gross profit to determine total profit for a given period.