Net Income

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Definition

Net income is what remains of a company's revenue after subtracting all costs. It is also referred to as net profit, earnings, or the bottom line. Net Income that is not paid out in dividends is added to retained earnings.

Increasing (decreasing) net income is a good (bad) sign for a company's profitability. Companies with consistent and increasing net income over time are looked at very favorably by stockholders.

Formula

Net Income = Revenue - Cost of Goods Sold - Other Expenses
Net Income (TTM) = Revenue (TTM) - Cost of Goods Sold (TTM) - Other Expenses (TTM)

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