Net Income

The Hindu Business Line  2 hrs ago  Comment 
The South Central Railway’s (SCR) gross originating earnings from freight and passenger transport was recorded at Rs 11,764 crore from April, 2014 to February this year, up 23 per cent against Rs...
Japan Today  Mar 7  Comment 
Millions of Japanese workers are taking home their smallest share of corporate income in two decades as companies build record cash hoards and abstain from substantial wage raises seen by Prime Minister Shinzo Abe as critical to a durable economic...
The Hindu Business Line  Mar 7  Comment 
South Central Railway has registered a 23 per cent increase in its gross earnings, including freight, so far this year. Its earnings stood at Rs 11,764 crore compared with Rs 9,589 crore...
Forbes  Mar 7  Comment 
Sina is expected to report lower fourth-quarter earnings on Tuesday, March 10, 2015. Analysts are expecting a 61% drop in earnings from a year ago. The consensus estimate is 15 cents per share, down from earnings of 38 cents per share a year...
MarketWatch  Mar 6  Comment 
Average hourly earnings edged up 0.1%, or 3 cents, to $24.78, slowing the year-on-year change to 2% from 2.1%. Economists polled by MarketWatch had forecast 0.2% growth. Average weekly earnings also rose 0.1%, to $857.39, which represents 2.6%...
Wall Street Journal  Mar 6  Comment 
Tribune Media Co. posted upbeat revenue guidance for the year, as higher advertising revenue and retransmission fees helped its earnings more than double in the December quarter.


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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