Net Income

What is Net Income?

Net Income is an accounting term that refers to the total revenue minus the total expenses for any given period. Net Income is one of the best ways to determine a business' profitability and is often referred to as the bottom line.

For Net Income, expenses to be deducted include Cost of Goods Sold (COGS), all operating expenses, and tax and interest costs.

Alternate names: Net Earnings, Net Profit

How to calculate Net Income

ƒ (Revenue - COGS - Operating Expenses - Taxes - Interest Expenses)

Favourable trend

Up is positive

Complexity level:
Intermediate

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Date created: Feb 10, 2019

Latest update: Aug 12, 2019

Metrics related to Net Income

Cost Of Goods Sold
Gross Margin
Revenue