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

1. the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)