Net Income

RECENT NEWS
Reuters  32 min ago  Comment 
The S&P 500 and Nasdaq posted their largest weekly drops since March on Friday as slowing global growth dragged commodity-related stocks lower while an earnings-fueled drop in Biogen took down the biotech sector.
TechCrunch  5 hrs ago  Comment 
 Hello compatriots, and welcome to another episode of CrunchWeek, TechCrunch’s weekly roundup show where we talk the biggest things in tech. This week we dig into Jet’s launch, just what it is, and why it wants to take on Amazon, big earnings...
Market Intelligence Center  11 hrs ago  Comment 
The Economic Times  11 hrs ago  Comment 
The S&P 500 and Dow Jones industrial average were lower while the Nasdaq gained amid a mixed bag of earnings from big companies.
Benzinga  Jul 24  Comment 
Xerox Corp (NYSE: XRX) reported in-line earnings for the second quarter. However, the company issued a weak earnings forecast for the third quarter. The Norwalk, Connecticut-based company reported a quarterly net profit of $12 million, or $0.01...
Motley Fool  Jul 24  Comment 
The decline in money-market account assets is probably good for Federated right now. Here's why.
Motley Fool  Jul 24  Comment 
Same-restaurant-sales weren't pretty, but the company is showing it can turn a profit.
New York Times  Jul 23  Comment 
Net income was down 47 percent from a year ago, and the company said it would eliminate 15 percent of its work force.
New York Times  Jul 23  Comment 
newratings.com  Jul 22  Comment 
SEATTLE (dpa-AFX) - Here is a quick summary of the earnings reported after the bell on Jul 23. 1.Encore Wire Corporation (WIRE) Net income for the second quarter was $11.4 million versus $10.2 million in the second quarter of last year. EPS...




 

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!

Example

  • 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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