What is a net income?
submitted by Jaws

Ribbidy Doodah

Net income (net profit, income, bottom line) is the amount of revenue remaining after you deduct all expenses from your total revenue. Those expenses would include operating costs, interest, taxes, and depreciation.

It is an indicator of a company's profitability over a specific period. It shows up on the bottom of the income statement, hence the nickname "the bottom line."

Here's the Net Income Calculator.

Cassandra

Net income is basically how much money a company makes after paying all its bills and taxes. Think of it as the profit left over at the end of the month after everything has been paid. It's important because it shows if the company is earning or losing money.

Wibatazu

It's total revenue minus all expenses (operating, interest, taxes, etc.). It measures profitability, and it's found at the bottom of the income statement.

Example: If a business earns $100,000 in revenue and spends $70,000 on expenses, the net income is $30,000.