The Income Statement Gross Profit is the very first line item on a business’ income statement, and shows the financial health of your company. It’s simply the difference between your company’s total sales revenue and its cost of goods sold. In other words, it’s the amount of money you actually made after all costs for materials, labor, and other expenses have been deducted from your total income. Knowing your Gross Profit gives you an invaluable perspective on how efficiently you’re running your business, and provides a great snapshot of your company’s overall financial well-being.