Net income

SeekingAlpha  3 hrs ago  Comment 
By Shaun Currie, CFA: American Eagle Outfitters (NYSE:AEO) reported quarterly earnings this week, which sent shares higher. The big picture is that the company's sales were not that great, and the spring and summer assortments were not as good as...
TechCrunch  Aug 22  Comment 
 In the immediate period after it reported its earnings yesterday after the bell, Salesforce slipped around 1 percent. Today, the company closed regular trading up more than 7 percent. Salesforce is now worth $33.87 billion. The share price rise...
SeekingAlpha  Aug 22  Comment 
By Renee Butler: Gap (GPS) reported earnings on Friday. The retail company reported adjusted earnings of 70 cents per share for 2Q14, up from 64 cents in the same quarter last year and topping analyst estimates of 69 cents. Gap's net sales rose 3%...
SeekingAlpha  Aug 22  Comment 
Financial Times  Aug 22  Comment 
SeekingAlpha  Aug 22  Comment 
MarketWatch  Aug 22  Comment 
Abercrombie & Fitch reports second-quarter results Thursday, with investors eager to see whether shares can hold on to their momentum and whether company executives will strike a positive tone for the all-important second-half of the year.
SeekingAlpha  Aug 22  Comment 
By Pater Tenebrarum: By Chris Hunter One of the water-cooler conversations at Bonner & Partners is whether the Shiller P/E - the valuation ratio popularized by Yale economist Robert Shiller - is worth a damn. If you're not already familiar...
The Australian  Aug 21  Comment 
RECYCLING giant Sims Metal Management said annual losses narrowed as it deepened cost cuts, but cautioned that turnover in North America was weak.
Forbes  Aug 21  Comment 
Investors seem to want more from and CEO Marc Benioff than 38% revenue growth and metrics across the board that grew at 30% or more. Despite slightly raising guidance on for its full-year revenue expectations and narrowly clearing...
SeekingAlpha  Aug 21  Comment 
By Aurium Investments: I have previously written about the Buckle (NYSE:BKE) being a stable and undervalued stock. The company reported earnings today that reaffirmed my outlook. The stock had been trailing the market since my call, but has popped...
SeekingAlpha  Aug 21  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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