Net Income

Posted in Finance, Accounting and Economics Terms, Total Reads: 945

Definition: Net Income

Net income for any company is defined as the total income of the company minus its total expenditure for that particular period.

The flow in which the net income is calculated is shown below:

Net sales – Cost of goods sold

= Gross profit – Sales and advertisement expenses

= EBITDA – Depreciation & amortization

= EBIT – Interest expense (cost of borrowing money)

= EBT – Tax expense

= Net income (EAT)


Search & Explore : Management Dictionary

Browse the definition and meaning of more terms similar to Net Income. The Management Dictionary covers over 7000 business concepts from 6 categories.

Share this Page on:

Similar Definitions from same Category: