Net income

Net income (NI), often referred to as net profit or net earnings, is a key financial metric calculated by subtracting all the costs and expenses, including cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenditures, from a company's total sales or revenue.

It is an indicator of a company's profitability and represents the amount of money that remains after covering all operational and financial obligations. Net income is featured on a company's income statement and provides investors and stakeholders with insights into how effectively the organization generates surplus revenue beyond its costs and expenses.

Calculating NI involves subtracting all expenses and costs from a company's total revenue. The formula is as follows: Net Income = Total Revenue - Total Expenses