Net income is the total profit of a business after all expenses, taxes, and costs have been deducted from total revenue. It is often referred to as the “bottom line” because it appears at the bottom of the income statement.
Net income includes all income streams and subtracts costs such as operating expenses, interest, depreciation, and taxes. It serves as a key indicator of a company’s profitability and financial health.
Investors, analysts, and business owners use net income to assess performance, compare against previous periods, and determine if the business is generating enough profit to reinvest, pay dividends, or reduce debt.