23. What Is Net Income — How Much Money Does a Company Really Keep in the End?
23. What Is Net Income — How Much Money Does a Company Really Keep in the End? 3-Line Summary Net income is the profit a company keeps after revenue, operating costs, financial costs, and taxes have all been reflected. Because it is the final profit number, net income looks like the company’s last report card, but it can include both core business performance and non-recurring effects. That is why investors should not look only at the size of net income, but also at why it was high or low and whether it can continue. Recommended Keywords net income, stock basics, company earnings, final profit, operating profit, financial statements, earnings analysis, EPS, investing terms, stock education Table of Contents Why net income matters The easiest way to understand net income How net income is calculated Simple examples with numbers Does high net income always mean a good company? Does low net income always mean a bad company? Net income versus operating profit The relationship between...