Net income
Profit or loss attributable to the parent after expenses and taxes.
Worked example · a round-number company
Net income$500M÷Revenue$5.0B=Net margin10.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↑Higher is better. Shows the accounting result available to the parent company's owners.
Keep in mind
- One-time gains and noncash items can move profit without similar cash generation.