Net income (net profit, the bottom line) is what's left after all expenses, interest, and taxes — the company's actual after-tax profit. It flows from the income statement into retained earnings on the balance sheet (or pays dividends). Net income is the basis for EPS, P/E ratio, and shareholder returns. Net margin (net income / revenue) varies widely: tech companies achieve 20-30%; retailers 1-3%. Watch for non-recurring items distorting net income — one-time gains from asset sales, restructuring charges, or tax benefits. Focus on operating cash flow alongside net income for a complete profitability picture.
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Net Income
August 22, 2026 · Aditya Gupta
Investing
Related terms
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A 401(k) is an employer-sponsored retirement plan where employees contribute pre-tax salary that grows tax-deferred until withdrawal. The…
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