There are several types of financial profit, each providing different insights into a business's financial health:
Gross Profit: The profit a company makes after deducting the costs associated with making and selling its products or services. It only considers variable costs. Operating Profit: Also known as EBIT (Earnings Before Interest and Taxes), this is the profit generated from regular business operations, excluding non-operational expenses. Net Profit: The final profit after all expenses, including taxes and interest, have been deducted. This is often referred to as the "bottom line."