Net income

RECENT NEWS  20 min ago  Comment 
WASHINGTON (dpa-AFX) - Hasbro Inc. (HAS) released a profit for its third quarter that increased compared to the same period last year. The company said its bottom line advanced to $257.80 million, or $2.03 per share. This was higher than $200.55...
MarketWatch  25 min ago  Comment 
Bank of America shares firm 2% premarket as earnings boosted by trading business
Benzinga  3 hrs ago  Comment 
  Companies Reporting Before The Bell Bank of America Corp (NYSE: BAC) is estimated to report its quarterly earnings at $0.33 per share on revenue of $20.94 billion. Hasbro, Inc. (NASDAQ: HAS) is projected to report its quarterly...
The Economic Times  4 hrs ago  Comment 
“If the Fed hikes rates, it will lead to more outflows from emerging markets like India,” said Nischal Maheshwari, head-institutional equities at Edelweiss Securities.
Financial Times  8 hrs ago  Comment 
Dollar index holds ground as US earnings season looms
Forbes  Oct 16  Comment 
The Dow Jones Industrial Average ended last week negative, making it important that earnings from its components beat expectations and offer solid forward guidance.
Financial Times  Oct 16  Comment 
Rising G4 bond yields and chances of a bounce for the pound are also in spotlight
SeekingAlpha  Oct 16  Comment 
SeekingAlpha  Oct 16  Comment 


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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