Net income

RECENT NEWS  23 min ago  Comment 
WASHINGTON (dpa-AFX) - Lennar Corp. (LEN.B) revealed a profit for its second quarter that advanced from last year. The company said its bottom line totaled $0.22 billion, or $0.95 per share. This was up from $0.18 billion, or $0.79 per share, in...
Benzinga  2 hrs ago  Comment 
  CarMax, Inc (NYSE: KMX) is estimated to report its quarterly earnings at $0.92 per share on revenue of $4.19 billion. Adobe Systems Incorporated (NASDAQ: ADBE) is projected to post its quarterly earnings at $0.68 per share on revenue...
Forbes  Jun 20  Comment 
The June quarter is shaping up to be another down one.
Forbes  Jun 20  Comment 
The Price to Earnings ratio gives us the ability to judge whether a stock is reasonably priced or not. In this analysis, we will use the PE ratio to estimate whether Guess’s stock price is driven by current earnings or by sentiments, i.e....
MarketWatch  Jun 18  Comment 
U.S. stocks for companies with a higher-than-average reliance upon British sales could face a rude awakening should the U.K. vote to exit the European Union on Thursday.
Forbes  Jun 17  Comment 
Ellison gained $1.3 billion and climbed two spots on FORBES’ ranking of the world’s richest people on Friday as Oracle stock rose 2.7% in response to the software giant’s positive fourth quarter earnings report on Thursday.
Benzinga  Jun 17  Comment 
Sky Solar Holdings Ltd (ADR) (NASDAQ: SKYS) is estimated to report a first-quarter loss at $0.06 per share on revenue of $13.45 million. © 2016 Benzinga does not provide investment advice. All rights reserved.
Reuters  Jun 16  Comment 
Shares of firearm makers surged on Thursday after a strong quarterly report from Smith & Wesson Holding Corp , adding to gains this week after a shooting at a gay nightclub in Florida in which 49 people were killed.


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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