What is Net Income?
A definition of Net Income
“Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating a company’s profitability.”

Business Glossary > What is Net Income?
Examples of Net Income in a Sentence:
Our company’s net income increased by 20% this year.
Investors closely watch the net income to assess business profitability.
The net income for the quarter surpassed all expectations.
Why is Net Income Important in Business?
Net income is crucial as it reflects a company’s profitability and provides insight into its financial health. Investors use net income to assess a company’s performance, making it a key indicator for decision-making. It determines the earnings available to shareholders and influences stock prices.
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Associated Terms
Here are some associated business terms and synonyms for “Net Income”:
- Net Profit
- Bottom Line
- Earnings
- Net Earnings
- Net Profit After Tax
Apple Inc. Net Income
Apple Inc. reported a record net income of $19.9 billion for the quarter ending in December 2022. This reflects the company’s successful product launches and strong sales during the holiday season, boosting Apple’s overall profitability.
Final Notes on Net Income
When analyzing a company’s financial health, it’s important to consider the following:
- Fluctuations in net income over time
- Comparison with industry peers
- Impact of seasonal factors on income
These factors help investors understand the stability and sustainability of a company’s profitability.
This has been a definition of Net Income meaning.
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