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In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.
An important of aspect of net income (in the USA) is that it for depreciation of equipment, reserves, and other resources that decline in value with production or time. A comparison of "profit" , "net income" , and "cash flow" would be very valuable if posted by a knowledgeable accountant.
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Though often shown on an income statement, it is not considered part of the Generally Accepted Accounting Principles (GAAP) by the SEC, and hence the SEC requires that companies registering securities with it (and when filing its periodic reports) reconcile EBITDA to net income.
The United States Internal Revenue Service (IRS) uses forms for taxpayers and tax-exempt organizations to report financial information, such as to report income, calculate taxes to be paid to the federal government, and disclose other information as required by the Internal Revenue Code (IRC).
In the most basic form of creating a personal budget the person needs to calculate their net income, track their spending over a set period of time, set goals based on the information previously gathered, make a plan to achieve these goals, and adjust their spending based on the plan.
Net income is also called net profit. It is calculated as follows: The gross income or revenue is tabulated. Where applicable, the cost of goods sold or cost of operations figure is subtracted from the gross income to yield the gross profit.
net_income profit: Net income or profit (revenue minus costs) realized by the company in its most recent fiscal year and the year prior, with the applicable years in parentheses. Example {{Unbulleted list|{{Steady}} US$128 million (2011)|US$128 million (2010)}} String: optional: Net income year: net_income_year profit_year: The year associated ...
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted national income (NNI adjusted for natural resource depletion – also called as NNI at factor cost).
Net Income per employee (NIPE) is a company's net income divided by the number of employees. This number shows the company how efficient it is with its employees. Theoretically, the higher the net income per employee the better.
