Net Income

RECENT NEWS  2 hrs ago  Comment 
PARIS (dpa-AFX) - Sanofi (SNYNF) reported earnings for its third quarter that advanced compared to the same period last year. The company said its bottom line came in at Euro1.67 billion, or Euro1.30 per share. This was higher than Euro1.63...
The Economic Times  3 hrs ago  Comment 
While analysts were painting a rosy picture around this time last year, hope of pickup in earnings has just shifted to the second half of the financial year.
The Hindu Business Line  4 hrs ago  Comment 
US stocks dipped in a choppy session after the latest round of earnings reports, as a decline in consumer discretionary sector and interest-rate sensitive stocks outweighed gains in healthcare names.
New York Times  Oct 27  Comment 
Volkswagen raised its earnings outlook Thursday after bouncing back to a profit of 2.34 billion euros ($2.55 billion) in the third quarter from a large loss a year earlier, when it took a big charge from its car emissions scandal.  Oct 26  Comment 
Schaltbau Group: Sales up slightly and earnings down in first nine months of 2016 DGAP-News: Schaltbau Holding AG / Key word(s): Quarter Results Schaltbau Group: Sales up slightly and earnings down in first nine months of 2016 26.10.2016 /...
MarketWatch  Oct 26  Comment 
UPS is slated to report third-quarter results before the market opens on Thursday, with earnings expected to grow from a year ago for the seventh-straight quarter.
New York Times  Oct 26  Comment 
Apple’s stock dropped after the company reported that its iPhone sales fell 5 percent from a year earlier.  Oct 26  Comment 
Gender pay gap also shrinks to lowest level in nearly two decades, as low inflation and ‘national living wage’ boost pay Low paid workers have been handed their biggest pay rise since the 1990s, after the introduction of the “national...  Oct 25  Comment 
WASHINGTON (dpa-AFX) - VMware Inc. (VMW) revealed earnings for its third quarter that gained ground from last year. The company said its bottom line came in at $485 million, or $1.14 per share. This was higher than $433 million, or $1.02 per...


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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