Browse Definitions :
Definition

net income

Net income is the amount of money left after all the expenses of a business have been subtracted from the gross revenue for a given reporting period, such as a fiscal quarter. Net income is also known as profit or earnings and is sometimes referred to as the bottom line because it is in that position on a company's income statement

In a general context, the terms income and revenue are sometimes used interchangeably but in the contexts of financial reporting and corporate governance, their meaning is distinct. Revenue, sometimes referred to as gross revenue, is the top line of an organization's income statement. The figure for revenue includes all money generated by a company, without any adjustments for sums that must be paid out of that total. Subsequent items on the statement summarize the expenses that must be subtracted from revenue, such as payroll, cost of goods sold (COGS), overhead and marketing. Net income is the figure that remains when all expenses have been subtracted from revenue.

Net income is also the figure used to calculate a company's earnings per share (EPS), which is a major indicator of profitability.

This was last updated in February 2018

Continue Reading About net income

SearchCompliance
  • OPSEC (operations security)

    OPSEC (operations security) is a security and risk management process and strategy that classifies information, then determines ...

  • smart contract

    A smart contract is a decentralized application that executes business logic in response to events.

  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

SearchSecurity
  • security token

    A security token is a physical or digital device that provides two-factor authentication for a user to prove their identity in a ...

  • hardware security module (HSM)

    A hardware security module (HSM) is a physical device that provides extra security for sensitive data.

  • buffer overflow

    A buffer overflow occurs when a program or process attempts to write more data to a fixed-length block of memory, or buffer, than...

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • change control

    Change control is a systematic approach to managing all changes made to a product or system.

  • disaster recovery (DR)

    Disaster recovery (DR) is an organization's ability to respond to and recover from an event that affects business operations.

SearchStorage
  • What is RAID 6?

    RAID 6, also known as double-parity RAID, uses two parity stripes on each disk. It allows for two disk failures within the RAID ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

  • VRAM (video RAM)

    VRAM (video RAM) refers to any type of random access memory (RAM) specifically used to store image data for a computer display.

Close