Net Income Over Revenue

In accounting the terms sales and revenue can be and often are used interchangeably to mean the same.

Net income over revenue. Just as revenue is the top line net income is the bottom line or the bottom figure on a company s income statement. Net income otherwise known as net profit the bottom line or net earnings is the amount remaining after all expenses interest and any other costs have been deducted from the total revenue. Aapl posted a top line revenue. Net income goes even further than net gross margin because you deduct all other expenses including overhead and taxes.

Investors should review the numbers used to calculate ni because expenses. Cost of goods is the money you spent to make money from a sale. After reporting net revenue on the income statement you subtract the cost of goods sold to get your gross income. Importance and advantages of using net revenue over gross revenue.

Net income ni is calculated as revenues minus expenses interest and taxes. Most of the time the investors are more bothered with gross revenue than with net revenue because it shows your ability to conduct business and progress into growth structure. Differences between revenue and net income. In other words the pure profit.

Net income also called net profit is calculated by deducting an organisation s total expenses from their total revenue. The formula for net income is simply total revenue minus total expenses. Earnings per share are calculated using ni. Net income is found by taking sales revenue sales revenue sales revenue is the income received by a company from its sales of goods or the provision of services.

Net income is the amount of accounting profit a company has left over after paying off all its expenses. If you re making a tailored suit it includes the cloth and the work hours required to stitch the outfit. Revenue refers to the sum of money which the company generates from doing the business in the normal course of operations from its customers whereas net income refers to the income earned by the company or the income left over in the company after deducting all the expenses of the period from the net revenue. Income example apple inc.