Net Income

Net Income is a company’s total earnings or profit, calculated by subtracting all expenses, taxes, interest, and costs from total revenue. It is often referred to as the "bottom line" because it appears at the bottom of a company's income statement. Net income is one of the most important financial metrics, as it shows how much profit a company has made during a specific period and indicates its overall financial health.

The formula for Net Income is:

Net Income = Total Revenue - Total Expenses - Taxes - Interest

Net income is used by investors, stakeholders, and analysts to assess a company’s profitability, operational efficiency, and future prospects. It’s a crucial metric for valuing companies, determining earnings per share (EPS), and making strategic business decisions.