Net Income

The Hindu Business Line  6 hrs ago  Comment 
The Eastern Railway has achieved a near 22 per cent growth in earnings to Rs 687 crore in June this year, as compared to the same period last year. In June 2013, earnings stood at Rs 565 crore. Acc...
The Hindu Business Line  11 hrs ago  Comment 
The Economic Times  10 hrs ago  Comment 
On Thursday, monsoon covered the entire country two days behind schedule and this active phase is likely to continue for next ten days.
SeekingAlpha  Jul 19  Comment 
By George Acs: The coming week stands to be a busy one as about 150 of the S&P 500 stocks will be reporting their quarterly earnings. While earnings had gotten off to a good start last week with a strong showing from those in the financial...
Yahoo  Jul 18  Comment 
The Yahoo Finance team talks about some of the biggest news stories that could move markets next week.
DailyFinance  Jul 18  Comment 
Encore Wire (NASDAQ: WIRE) will release quarterly earnings Thursday, July 24th, after stock market close. A conference call will be held to discuss Quarterly results followed by a Q&A session: Date:     ...
Forbes  Jul 18  Comment 
We figure in the second quarter, the company will continue to face pressure on its top line from flat defense spending by the U.S. government, which constitutes over 80% of Lockheed?s top line. On the bright side however, we anticipate Lockheed?s...
Yahoo  Jul 18  Comment 
The largest industrial company in the United States is moving away from the finance sector as it refines its focus.
Wall Street Journal  Jul 18  Comment 
Zalando said cost efficiency helped it post an operating profit in the second quarter and that it expects to come close to breaking even over the full year.
Wall Street Journal  Jul 18  Comment 


Net Income is the total amount of profit a company made over a given period of time

Net Income, (sometimes referred to as "net profit", or simply "earnings") is the amount of profit left over after all expenses, including federal and state taxes, have been subtracted. More specifically, it is equal to total revenue less cost of revenue, less operating expenses, less interest expense and income taxes, less or plus extraordinary items, less or plus other items. More simply, it is gross profit minus total operating expenses, minus interest expenses and taxes, plus any other income.

On a very high level, net income can be thought of as all money coming into the company minus all money spent.

Net income is often referred to as "income attributable to common shareholders" or some similar phrase. Net income represents the final net earnings result of the business on an accounting basis, not necessarily a cash basis. It is one of the most frequently tracked metrics because it is an important indicator of how well a company is doing during a particular period. When people refer to the "bottom line" they are talking about a company's net income as it is the last line on the income statement and the most significant number on the statement - arguably of any statement.

Net income is usually divided by the number of shares outstanding to arrive at earnings per share (EPS), the common barometer heard in nearly all financial reports because it provides an individual value to every share exchanged of a company. Most analysts and investors focus on "diluted" earnings per share, which figures in outstanding employee stock options and other equity grants beyond actual shares outstanding in the share markets.

Net Income also appears as the top line of the cash flow statement and represents the starting figure from which Change in Cash and Cash Equivalents is calculated. That saves me. Thanks for being so senslibe!


  • At the close of its fiscal year, Company XYZ reports revenue of $17 million with a cost of revenue of $7 million (equaling a gross profit of $10 million). Operating expenses total $5 million while the company owes $2.5 million in income taxes and $.5 million in interest expenses. The company also reports other income of $2 million. Thus, XYZ's net income for the fiscal year is $4 million. (17 - 7 - 5 - 2.5 - .5 + 2 = 4)
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