Does Net Income Means Revenue

Also called income earnings or net profit.

Does net income means revenue. For individuals however income generally refers to the total wages salaries tips rents interest or dividend received for a specific time period. If a company has positive net income it has recorded a profit. Net income goes even further than net gross margin because you deduct all other expenses including overhead and taxes. Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations.

If it has negative net income it is operating at a loss. This is the income that is left over after all the expenses have been paid. 126 bil 2003 company net income. Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000.

People often refer to net income as the bottom line as it is the last line item on an income statement. The net revenue is what a company earns as a whole and the net income that the company is left with after bearing all the expenses and adding other sources of income. Net income ni also called net earnings is calculated as sales minus cost of goods sold selling general and administrative expenses operating expenses depreciation interest taxes and. Income or net income is a company s total earnings or profit.

The formula for net income is simply total revenue minus total expenses. For businesses net annual income or net profit equals the revenue a company generates in a year minus its costs such as purchases production expenses labor taxes interest expenses overhead utilities and other expenses. Net revenue and net income are important figures that demonstrate a company s financial stability. For a business income refers to net profit i e.

Refers to a company s financial position when total revenues exceed total expenses in other words net income is the profits of a company. What remains after expenses and taxes are subtracted from revenue revenue is the total amount of money the business receives from its customers for its products and services.