Browse Definitions :
Definition

net income

Contributor(s): Ivy Wigmore

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

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Malwarebytes software

    Malwarebytes is a cross-platform anti-malware program that detects and removes malware and other rogue software.

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is a protocol that provides authentication, privacy, and data integrity between two communicating ...

  • van Eck phreaking

    Van Eck phreaking is a form of electronic eavesdropping that reverse engineers the electromagnetic fields (EM fields) produced by...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • solid-state storage

    Solid-state storage (SSS) is a type of computer storage media made from silicon microchips. SSS stores data electronically ...

  • persistent storage

    Persistent storage is any data storage device that retains data after power to that device is shut off. It is also sometimes ...

  • computational storage

    Computational storage is an information technology (IT) architecture in which data is processed at the storage device level to ...

Close