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

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • cybersecurity insurance (cybersecurity liability insurance)

    Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to ...

  • phishing

    Phishing is a form of fraud in which an attacker masquerades as a reputable entity or person in email or other communication ...

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

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

SearchStorage

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close