To stay in business, your company needs to earn more than it spends, at least over the long term. A net income formula tells you whether you are earning or losing money. However, this equation only ...

If your business is organized as a corporation, then you've got stockholders, and you can assume those stockholders are paying close attention to your net income formula. After all, "net income" is ...

Gross income is the total of all income you receive before taxes. It’s also called pre-tax income. Net income is your income after taxes (or take-home pay). Your gross income figure will always be ...

Gross income measures how much total income a company brings in from the sale of its products and services minus the cost of producing those goods and services. In contrast, net income is the profit ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Net income reflects a company's profitability after subtracting all operating costs and expenses. Investors use net income to assess past and future performance and compare it against peers. A drop in ...

An income statement presents the results of a company’s operations for a given period—a quarter, a year, etc. The income statement presents a summary of the revenues, gains, expenses, losses, and net ...

Net income and free cash flow are related but are not the same measure. Net income represents a company's accounting profit, whereas cash flow presents whether a company's cash balance increased or ...

Net operating income (NOI) measures a company's profit from its core operations before taxes and interest. A high NOI indicates efficient management and controlled costs; a low NOI suggests rising ...