Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

Net income reflects a company's profitability after subtracting all operating costs and expenses. Investors use net income to assess past and future performance and compare it against peers. A drop in ...

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Gross income measures how much total income a company brings in from the sale of its products and services minus the cost of producing those goods and services. In contrast, net income is the profit ...

Compare gross and net profit margins to understand their effects on business profitability and financial health.

Retained earnings are the cumulative profits that a company has kept to reinvest in its business. Some earnings are distributed to shareholders as dividends. The remainder is considered retained ...