Net income

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SeekingAlpha  5 hrs ago  Comment 
By WhisperNumber: 3M (NYSE:MMM) is expected to report earnings on Thursday, July 24th. The whisper number is $1.96, five cents ahead of the analysts' estimate and showing some confidence from investors. 3M has an 60% positive surprise history...
New York Times  7 hrs ago  Comment 
Boeing stock took a 2.3 percent dip after the company announced $425 million in charges over a problem with Air Force refueling tankers.
Wall Street Journal  Jul 23  Comment 
GlaxoSmithKline downgraded full-year earnings expectations, as its second-quarter profit was hit by currency moves, weak sales of its respiratory drugs and the continuing bribery investigation in China.
Wall Street Journal  Jul 23  Comment 
Wall Street Journal  Jul 23  Comment 
Wall Street Journal  10 hrs ago  Comment 
The Market Financial  Jul 22  Comment 
The consumer is not spending like they used to. This is fact and can be seen in the economic numbers as well as the earnings reports from companies in recent days. What investors need to know is that the fact that consumers are not spending now is...
Yahoo  Jul 22  Comment 
Coca-Cola and McDonald's have been uninspiring as Chipotle and Netflix are proving you can raise prices without sacrificing growth.
Benzinga  Jul 22  Comment 
Kimberly-Clark (NYSE: KMB) reported weaker-than-expected second-quarter earnings and reduced the high end of its FY14 earnings forecast. Kimberly-Clark now projects 2014 earnings of $6.00 to $6.15 per share, versus its earlier forecast of $6.00...
SeekingAlpha  Jul 22  Comment 
Wall Street Journal  Jul 22  Comment 
Coca-Cola's soda volumes resumed growth but profit and revenue slipped on weaker foreign currencies and higher marketing costs.
Wall Street Journal  Jul 22  Comment 
Coca-Cola's soda volumes resumed growth but profit and revenue slipped on weaker foreign currencies and higher marketing costs.




 

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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