Net income

Net income, often referred to as net profit or bottom line, represents the total earnings of a company after all expenses and taxes have been subtracted from total revenue. This crucial financial metric gives investors and stakeholders a clear picture of a company's profitability and financial health. Net income serves as a key indicator for decision-making regarding investments, business strategies, and operational adjustments. By analyzing net income, businesses can gauge their performance over a specific period and identify areas needing improvement to enhance profitability.