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Net income
Measure of the profitability of a business venture
Net income
In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes, and other expenses for an accounting period. It is computed as the residual of all revenues and gains less all expenses and losses for the period, and has also been defined as the net increase in shareholders' equity that results from a company's operations. It is different from gross income, which only deducts the cost of goods sold from revenue. For households and individuals, net income is the (gross) income minus taxes and other deductions (e.g. mandatory pension contributions).
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