Net Income
A company's total profit after subtracting all expenses, taxes, and costs from revenue — the bottom line.
What is Net Income?
Net income (also called net profit or net earnings) is the total profit remaining after subtracting all costs and expenses from revenue — including cost of goods sold, operating expenses, interest, and income taxes. It is the final line on the income statement, often called 'the bottom line.' Net income is used to calculate earnings per share (EPS), return on equity (ROE), and other profitability metrics. While net income is important, it can be influenced by accounting choices (depreciation method, revenue recognition timing), making operating cash flow and free cash flow useful cross-checks on actual cash profitability. Net income flows to retained earnings on the balance sheet when not paid out as dividends.
Example
Apple reported FY2024 revenue of $391 billion, with a cost of goods sold of $210 billion (gross profit: $181 billion), operating expenses of $57 billion (operating income: $124 billion), interest income net of expense: +$1.3 billion, and provision for income taxes: $29.7 billion. Net income: $93.7 billion — the largest in Apple's history and the foundation for its EPS and ROE calculations.
Source: Apple 10-K FY2024