Net Income


Amount of money earned after deducting from the gross revenues of a business all expenses, including overhead, employee salaries and benefits, manufacturing costs, inventory costs, distribution costs, and marketing and adverstising costs.

See Also

Earnings, gross profit, SDE, EBIT, EBITDA.


Net income is normally irrelevant when evaluating a small to mid-sized company. The most commonly used metrics for determining earnings are SDE, EBIT, and EBITDA.