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EntityQ570938· pop 44· linked from 10,600 articles

net income

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Also known as bottom line, total comprehensive income, net earnings, net profit, gross profit, gross margin, sales profit, credit sales

measure of the profitability of a business venture

~6 min read

Encyclopedic overview

In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes, and other expenses for an accounting period.

It is computed as the residual of all revenues and gains less all expenses and losses for the period, and has also been defined as the net increase in shareholders' equity that results from a company's operations. It is different from gross income, which only deducts the cost of goods sold from revenue.

Excerpted from Wikipedia’s “net income” article, available under the CC BY-SA 4.0 licence.