Net income

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Yahoo  8 hrs ago  Comment 
Analysts expected Coca-Cola to report earnings of about 58 cents a share on $11.6 billion in revenue, according to a consensus estimate from Thomson Reuters.
The Economic Times  9 hrs ago  Comment 
Some analysts are advising investors to remain cautious as the rally could fizzle out as soon as the liquidity tap dries up or if earnings fail to catch up.
MarketWatch  9 hrs ago  Comment 
Toughest two quarters are now behind for iPhone maker, analysts say, and predict strong growth for the rest of the year.
Motley Fool  Jul 27  Comment 
Higher-than-expected financial results, as well as the initial success of Apple's iPhone SE, has investors optimistic about Apple stock.
MarketWatch  Jul 26  Comment 
Google parent Alphabet is expected to report second-quarter earnings on Thursday after the bell.
MarketWatch  Jul 25  Comment 
Analysts expect a strong performance from Facebook Inc. when the company reports second-quarter earnings after the market closes Wednesday.
newratings.com  Jul 25  Comment 
FORT LAUDERDALE (dpa-AFX) - Citrix Systems Inc (CTXS) announced a profit for its second quarter that rose compared to the same period last year. The company said its bottom line climbed to $188.49 million, or $1.20 per share. This was up from...
MarketWatch  Jul 25  Comment 
U.S. stocks retreat from record levels as investors turn cautious ahead of a busy week of earnings and central bank meetings.




 

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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