Net Income

What is it? The amount of a companys total sales (revenue) remaining after subtracting all of its costs, in a given period of time (also referred to as net earnings). This very important figure (literally the source of the term the bottom line for where you find it on an income statement) is the best measure of the current operating state of a company. Earnings per share (or EPS) is found by dividing this figure by the number of share of common stock outstanding.

Added By: Gavin

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