Net income (or net loss) shows how much profit a company made — or how much it lost — during a specific period, after subtracting all expenses from its revenues and gains. It’s one of the most important figures on the income statement because it reflects the company’s bottom line. If you’re wondering what is net income or how to calculate net income, it’s a key measure of a company’s profitability and overall financial performance.
Building Blocks: Financial Statements: Income Statement
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