net income

net income definition - business

net income

Income after all expenses and taxes have been deducted. Net income, the most frequently viewed figure in a firm's financial statements, is used in calculating various profitability and stock performance measures, including price-earnings ratio, return on equity, earnings per share, and many others. Also called aftertax profit, bottom line, net, net profit, profit. Compare gross profit.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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