Net Income

Net Income is the profit a company keeps after paying all its bills. It's what's left over after subtracting expenses, taxes, and interest from total revenue. You'll see Net Income on a company's income statement (a financial report showing how much money came in and went out). It matters because it shows whether a company is actually profitable—not just making sales, but genuinely making money. A company could have huge revenue but lose money if expenses are too high. For example, if TechCorp Inc. brought in $100 million in sales but spent $80 million on operations and taxes, their Net Income would be $20 million. That's the real profit shareholders care about.