Net income (redirected from Net earning)

Net income

The company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.

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net income

Income after all expenses and taxes have been deducted. Net income, the most frequently viewed figure in a firm's financial statements, is used in calculating various profitability and stock performance measures including price-earnings ratio, return on equity, earnings per share, and many others. Also called aftertax profit, bottom line, net, net profit, profit. Compare gross profit.

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Net income

A company's total revenue less its operating expenses, interest paid, depreciation, and taxes. For example, suppose a widget manufacturer earns $1,000,000 in total revenue. The widgets cost $200,000 to make and the administrative and payroll expenses total $250,000. The manufacturer also must subtract $50,000 in depreciation on the widget manufacturing equipment and pay $200,000 in taxes. The net income is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $500,000. See also: Operating income.

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Net income. Net income is the amount of money a corporation has earned after subtracting all of the expenses of producing its goods or services from the income or revenue it has realized from sales of those goods or services.