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Net Income Definition

Net income is a company's total profit after all expenses, taxes, and costs have been deducted from revenue.

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What is Net Income?

It is often referred to as the bottom line and is a key measure of overall profitability.

Net income is used to calculate metrics such as earnings per share and profit margins.

Example of Net Income

A company with $10 million in revenue and $8 million in total expenses has net income of $2 million.

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