Net Income
Browse all terms in GlossaryDefinition
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)
Related Terms
Cost of Goods Sold, Dividend, EBITDA, Expenses, Free Cash Flow, Net, Net Income, Net Profit, Profit Margin, Return on Equity (ROE), Revenues