Net Income

on . Posted in Manufacturing Engineering

Net income, abbreviated as NI, also called net profit or the bottom line, is the amount of money a company has earned after deducting all expenses, taxes, interest, and other costs from its total revenue during a specific period of time, typically a quarter or a fiscal year.  In simpler terms, net income is the profit that remains for the company after all expenses have been subtracted from its revenue.

Net income is an important measure of a company's profitability and financial performance.  It is often used by investors, analysts, and stakeholders to assess the health and success of a business.  A positive net income indicates that the company has generated more revenue than expenses during the specified period, while a negative net income suggests that the company has incurred losses.


Net Income Formula

\( NI =  TR - TE   \)
\( NI \) = net income
\( TE \) = total expense
\( TR \) = total revenue


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Tags: Manufacturing