Net Income Formula

Definition: Net Income (the 'bottom line') measures profitability after all expenses. It flows into Retained Earnings on the balance sheet and into Earnings Pe…

Equation

Net Income = Revenue − COGS − Operating Expenses − Interest − Taxes

Net Income (the 'bottom line') measures profitability after all expenses. It flows into Retained Earnings on the balance sheet and into Earnings Per Share for equity valuation.

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