Synonyms: Net Income = Net Profit = Bottom Line
Business earnings after deducting the OPEX, Interest and Income Tax from Total Revenue within the Accounting Period:
Net Income = EBT − Income Tax = EBIT - Interest - Income Tax |
|---|
| or |
Net Income = Operating Income + Non-Operating Revenue - Non-Operating Expenses - Interest - Income Tax |
| or |
Net Income = Sales - COGS - OPEX + Non-Operating Revenue - Non-Operating Expenses - Interest - Income Tax |
| or |
Net Income = Total Revenue - COGS - OPEX - Non-Operating Expenses - Interest - Income Tax |
It is often called Bottom Line because it is shown at the bottom line in P&L.
It is one of the most important measures of the Business profitability.
Only positive Net Income with a positive FCF adds value to the Business.
See also
Business / Business Administration / Financial Management / Financial Accounting / Profit and Loss (P&L)