Net Income

RECENT NEWS
SeekingAlpha  4 hrs ago  Comment 
Wall Street Journal  Aug 28  Comment 
Procter & Gamble cut Chief Executive A.G. Lafley’s bonus by $1.1 million after the consumer-goods company’s sales and profit growth came up short of its targets.
TheStreet.com  Aug 28  Comment 
NEW YORK (TheStreet)-- If you want to make more money from trades linked to corporate earnings, then head for the Twitter-sphere. It could give you a better result than Wall Street's best, according to new research. The findings come from a...
Motley Fool  Aug 27  Comment 
The specialty retailer beat quarterly sales expectations for the second time this year.
Clusterstock  Aug 27  Comment 
It is almost the end of second-quarter earnings season, and it looks like it will have been the least confidence-inspiring set of results in a decade. Societe Generale said in an equity strategy note on Thursday that just 43% of companies had...
TheStreet.com  Aug 27  Comment 
NEW YORK (TheStreet) -- The Michaels Co. shares closed trading up by 6.65% to $25.51 on Thursday afternoon, following the release of the company's 2015 second quarter earnings results. The Irving, TX-based arts and crafts specialty retailer...
Wall Street Journal  Aug 27  Comment 
MarketWatch  Aug 27  Comment 
Apple sold 3.6 million smartwatches, just 800,000 less than wearable-industry leader Fitbit, IDC reports, a much better performance than Apple’s earnings report suggested.




 

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