Net Income

What is Net Income?

Net Income, often referred to as the bottom line, is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue. It is a key indicator of a company's profitability over a specific period.

Short Description: The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

• Total Revenue: The complete amount of income generated by the sale of goods or services related to the company's primary operations.
• Expenses and Costs: Includes operating expenses, interest, taxes, depreciation, and any other costs incurred during the period.
• Profitability Indicator: A critical measure for investors and analysts to gauge the financial health and potential of a company.

Net Income is captured on the income statement and is essential for calculating earnings per share (EPS) and assessing economic performance.