Net Income (NI)

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What is it?

Net income is equal to net earnings (profit) calculated as sales less cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes and other expenses. Net income is the “bottom line” of a company’s income statement.

Who is interested?

The financial community and investors.

What does it tell me?

This number appears on a company’s income statement and measures the total profit left for a company after all expenses. It is an important measure of how profitable a company is.