Gross Profit is a measure of financial performance that indicates how much profit a business makes after deducting the cost of goods sold. It’s calculated by subtracting the total cost of goods sold from a company’s total revenue to figure out the difference between the two. In other words, it’s the profit made from selling products or services before taking into account any additional expenses. Gross Profit can be used to help businesses assess their pricing strategies and evaluate their overall profitability over time. By understanding their Gross Profit, businesses can identify sales patterns and adjust their strategy accordingly in order to maximize profits.