Net income
hideNet income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. Net income can be distributed among holders of common stock as a dividend or held by the firm as retained earnings. Net income is an accounting term. In some countries (such as the UK) profit is the usual term.[citation needed] Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity.
The items deducted will typically include tax expense, financing expense (interest expense), and minority interest. Likewise, preferred stock dividends will be subtracted too, though they are not an expense. For a merchandising company, subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances. For a product company advertising, manufacturing, and design and development costs are included.
Net income is informally called the bottom line because it is typically found on the last line of a company's income statement. A related term is top line, meaning revenue, which forms the first line of the account statement.
An equation for net income in merchandising:
Net income or net loss = Revenue – Cost of goods sold – Sales discounts – Sales returns and allowances – Expenses – Minority interest – Preferred stock dividends
For more information about Net income, read the full article at
Wikipedia.
This text uses material from Wikipedia and is available under the GNU Free Documentation License.
News tagged with net income
HP profit jumps on cost cuts, new market expansion
Nov 23, 2009 |
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(AP) -- Hewlett-Packard Co.'s cost-cutting and push into new markets is helping soften the blow from weakness in the company's mainstay businesses.
Dell's profit, stock drop on weak quarterly report
Nov 19, 2009 |
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(AP) -- Some of the computer-industry's biggest players - such as IBM Corp., Intel Corp. and Hewlett-Packard Co. - have wowed Wall Street this fall with stronger-than-expected profits.
Cisco forecasts first revenue growth in a year
Nov 04, 2009 |
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(AP) -- Cisco Systems Inc. doesn't want Wall Street to interpret its forecast for its first quarterly revenue growth in a year as evidence that the U.S. and other economies are roaring back.
Analysts see more growth ahead for Amazon
Oct 24, 2009 |
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(AP) -- Low prices, solid customer service and an increasing willingness by consumers to spend on discretionary items contributed to Amazon.com Inc.'s solid third quarter, and the growth should continue despite ...
Netflix 3Q earnings rise 48 pct, but stock falls
Oct 22, 2009 |
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(AP) -- Netflix Inc. has been doing so well during the recession that it's getting tougher for the DVD-by-mail pioneer to live up to investors' lofty expectations.
EBay 3Q net income falls, but revenue rises
Oct 21, 2009 |
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(AP) -- Despite a 29 percent decline in third-quarter net income, eBay Inc. saw stronger revenue in its marketplaces businesses, suggesting that efforts to revitalize its main Web site are gaining traction ...
Investors lap up Apple's 47 percent profit jump
Oct 19, 2009 |
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(AP) -- Wall Street knew Apple Inc.'s results for the most recent quarter would blow past the company's guidance, but investors clearly weren't prepared for the 47 percent jump in profit that Apple delivered.
IBM sees better profit despite tech sales slump
Oct 15, 2009 |
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(AP) -- IBM Corp. is a rare example of a company that has kept boosting profit and jacking up its guidance even as the recession has sapped its sales.
Intel stokes hopes for PC recovery
Oct 13, 2009 |
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(AP) -- Intel Corp. has been asserting for months that the personal computer business is rebounding from its deepest slump in nearly a decade. Its stock jumped late Tuesday on signs things are picking up ...
Hard-drive makers see big run-ups on PC recovery hopes
Sep 25, 2009 |
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Investors willing to make early bets on the recovery of the PC sector have scored big with Seagate Technology and Western Digital Corp. -- two makers of hard-disk drives that have seen their market values more than triple ...
EMC net falls 43 pct, still tops Street views
Jul 23, 2009 |
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(AP) -- Fresh off a successful bid for a major acquisition, EMC Corp. said Thursday that its second-quarter profit plunged 43 percent as companies remained hesitant to spend money on technology.
Qwest 1Q earnings rise 37 pct after cost cuts
Apr 29, 2009 |
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(AP) -- First-quarter earnings at Qwest Communications International Inc. rose 37 percent, as the phone company was helped by cost-cutting and strong results from its business services unit.
Yahoo's feeble 1Q triggers nearly 700 more layoffs
Apr 21, 2009 |
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(AP) -- Yahoo Inc.'s first-quarter results tread familiar ground as the Internet company's financial erosion triggered another round of layoffs and management promised better days ahead.
