Okuzeka
Accounting & Tax vocabulary · Financial Statements

Net income

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, net income means: The profit left after all expenses, interest and taxes have been deducted from revenue for a period. If the result is negative, it is a net loss.

In Turkish: net kar, dönem net karı

How it is used

The bottom line of the income statement, also called net profit or net earnings. Analysts compare it with revenue (net margin) and divide it by the number of shares (earnings per share).

Example sentences

  1. Net income fell to 45 million lira because of higher interest costs.

  2. Our net income margin remains below the sector average.

Common collocations

  • net income for the year
  • report net income
  • net profit
  • bottom line
  • income statementA financial statement that shows a company's revenue, expenses and resulting profit or loss over a period, such as a quarter or a year.
  • revenueThe income a business earns from its normal activities, mainly from selling goods or services, before any costs or expenses are deducted.
  • gross profitRevenue minus the cost of goods sold, before operating expenses such as rent, salaries and marketing are deducted.
  • retained earningsThe total profits a company has kept over the years instead of paying them out to shareholders as dividends. They form part of equity.
  • EBITDAEarnings before interest, taxes, depreciation and amortization: a measure of operating profit that leaves out financing costs, tax and non-cash asset costs.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.