net income
Học thuậtThân thiện
Definition
Noun: * The profit remaining after all expenses, including taxes and non-cash costs like depreciation, have been subtracted from total revenue for a specific period. This is a key measure of a company's or individual's profitability.
Usage
- "Net income" is a formal financial term used in accounting, business reporting, and personal finance. It is often reported on financial statements like the income statement or profit and loss statement.
- It is typically calculated for a defined period, such as a quarter or a fiscal year.
- It represents the final, bottom-line profit that can be distributed to owners (as dividends) or reinvested in the business.
Examples
- The company reported a net income of $5 million for the fiscal year.
- After paying all her business expenses and taxes, her net income was significantly lower than her gross revenue.
- Investors were pleased to see an increase in the corporation's net income compared to the previous quarter.
Advanced Usage
- "Net income margin": A profitability ratio calculated as (Net Income / Revenue) x 100, showing what percentage of revenue translates into profit.
- A high net income margin indicates efficient management and strong profitability.
- "Net income attributable to shareholders": On a consolidated income statement, this specifies the portion of net income belonging to the parent company's equity holders.
Variants and Related Words
- Net profit (noun): A direct synonym for net income.
- Bottom line (noun, informal): A common informal term for net income, referring to the final line on an income statement.
- Net earnings (noun): Another synonym frequently used interchangeably with net income.
- Net loss (noun): The opposite result, when total expenses exceed total revenue.
Synonyms
- Profit
- Net profit
- Earnings
- Bottom line
- Net earnings
Antonyms
- Net loss
- Deficit
Noun
- the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)