Net income, abbreviated as NI, also called net profit or the bottom line, is the amount of money a company has earned after deducting all expenses, taxes, interest, and other costs from its total revenue during a specific period of time, typically a quarter or a fiscal year. In simpler terms, net income is the profit that remains for the company after all expenses have been subtracted from its revenue.
Net Income Formula |
| \( NI \;=\; TR - TE \) |
| Symbol |
| \( NI \) = net income |
| \( TE \) = total expense |
| \( TR \) = total revenue |
Net income is an important measure of a company's profitability and financial performance. It is often used by investors, analysts, and stakeholders to assess the health and success of a business. A positive net income indicates that the company has generated more revenue than expenses during the specified period, while a negative net income suggests that the company has incurred losses.
