Definition: 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 advertising costs.

See Also: Earnings , gross profit , SDE, EBIT , EBITDA .

Tips: 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.