- A company’s total net earnings / profit, that is calculated by adjusting for interest, taxes, depreciation and other expenses against revenues, and reflects a company’s profitability over a period of time. Net income is calculated as total revenue (sales) minus expenses, taxes and other operating costs. This computation is used when businesses need to determine earnings per share.
- An individual’s gross income minus taxes and other fixed deductions.
- A company’s “bottom line.”
Accountant: “Because of your high operational costs this past year, your net income was only $1.”
Executive: “So each of the 100 shares in the company is currently only worth a single penny?”
Accountant: “That’s right.”
Executive: “Can a penny still buy a gumball?”