Net Income

RECENT NEWS
Wall Street Journal  1 hr ago  Comment 
Interpublic Group said its third-quarter earnings nearly doubled as revenue grew in both the domestic and international markets
SeekingAlpha  5 hrs ago  Comment 
By The Value Investor: McDonald's (NYSE:MCD) released a mixed earnings report on Tuesday before the opening bell. The company posted stronger than anticipated adjusted earnings, although the earnings report was full of one-time items which took a...
SeekingAlpha  8 hrs ago  Comment 
By Ayush Singh: Ford's (NYSE:F) performance in the last one month has been pretty weak, with the stock losing 14% of its value. Numerous downgrades, along with some headwinds have negatively affected Ford's stock and investors may be hoping that...
SeekingAlpha  11 hrs ago  Comment 
By SA Transcripts: FRMO Corp. (OTCPK:FRMO) Q1 2015 Earnings Conference Call October 21, 2014 4:15 PM ET Executives Thérèse Byars – Corporate Secretary Murray Stahl – Chairman & Chief Executive Officer Presentation ...
Wall Street Journal  Oct 22  Comment 
Yahoo reported a slight increase in revenue, helped in part by its growing mobile business, easing for now the pressure on CEO Marissa Mayer.
MarketWatch  Oct 21  Comment 
Paid-click ads and the proceeds from Alibaba's IPO will be among the factors getting attention when Yahoo reports is third-quarter results Tuesday.
Yahoo  Oct 21  Comment 
By Sam Forgione NEW YORK (Reuters) - A measure of global equity markets advanced on Tuesday as technology earnings lifted U.S. shares and the prospect of European Central Bank corporate bond purchases ...
Wall Street Journal  Oct 21  Comment 
European companies’ business weakened in recent months, with the latest quarter’s first major earnings releases offering a grim outlook for the Continent’s economy.
Wall Street Journal  Oct 21  Comment 
Wall Street Journal  Oct 21  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!

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)
Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki