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net income


Definitions (2)

1. In business, what remains after subtracting all the costs (namely, business, depreciation, interest, and taxes) from a company's revenues. Net income is sometimes called the bottom line. also called earnings or net profit.

2. For an individual, gross income minus taxes, allowances, and deductions. An individual's net income is used to determine how much income tax is owed.

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Advice on ROEROE (Return on Equity) equals the company's net income divided by shareholders' equity and is viewed as an indicator of how well a company utilizes shareholders' money. ... Read more


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