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Income statement

Net Income

The company's bottom-line profit after all expenses, interest, and taxes have been subtracted from revenue.

Part of the Reading Financial Statements course · Lesson 13 of 33
Formula
Revenue − COGS − Operating Expenses − Interest − Taxes (± Non-operating Items)

What it is

Net income is the final profit figure on the income statement, sometimes called the bottom line, net earnings, or net profit. It is what remains from revenue after subtracting all costs: cost of goods sold, operating expenses, interest, taxes, and any one-time items. It is the basis for earnings per share and for dividends.

Why it matters

Net income is the single number most often used to judge whether a company is profitable and to compute the P/E ratio. The pitfall is that it can be distorted by non-cash charges, one-time gains or losses, and accounting choices, so a strong net income does not always mean strong cash generation; comparing it to operating cash flow is a useful check.

How it's calculated

Subtract all expenses — COGS, operating expenses, interest, and taxes — from revenue, adjusting for any non-operating items.

How Quintarthai uses it

Net income appears in the 10-year income statement on the Financials tab, drives the net-margin shown in the Summary Key-metrics grid, and underpins the P/E and ROE figures across the company page.

Cross-border note. Differences between IFRS and US GAAP (for example in how certain gains, impairments, or pension costs are recognized) can cause net income to differ for otherwise similar Canadian and US companies, so cross-border comparisons benefit from checking the underlying filings.

FAQ

Is net income the same as cash profit?
No. Net income includes non-cash items like depreciation and accruals, so a company can report positive net income while generating less — or more — actual cash.
What is the difference between net income and operating income?
Operating income measures profit from core operations only, while net income also reflects interest, taxes, and any non-operating gains or losses.
Related terms
See Net Income on a real company
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