Definition of Net Income?

Definition: What is Net Income?

Net income also called net profit. It measures the total revenue amount that exceeds the total expenses. In other words, Net Income shows how much much revenue left after the payment of all of the expenses.

Leftover revenue used by the company for different purposes like the new project, debt payoff or distribute to the shareholders of the company.

What is Net Income?

For the indication of the financial position and assets management efficiency of the company investors, creditors, and management use the net income measurement.

Net income appears at the bottom of the income statement because of which many people measure to this as the bottom line.

Financial Ratio is a forum where you will learn about all ratios definitions and formulas.

Updated: September 27, 2019 — 2:48 pm

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