Net income definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Net income is the total amount of profit (often known as earnings) made by a company, listed in its earnings report.

It is often also called the bottom line, and is used as the basis for several key indicators, including earnings per share. As the total figure, net income is key to assessing a company’s profitability over a period.

To calculate net income, a company will remove all costs and expenses incurred from its total revenue. It will then also remove any money paid in tax, with the result being the net income for the period.

Net income can be used to pay shareholders a dividend, or be reinvested back into the business. 

Visit our news and analysis section

For up-to-date analysis on stocks and their bottom lines, read our share news reports.

Contact us

24 hours a day from 10am Saturday to Friday night at midnight.

010 344 0053

You can also email helpdesk.za@ig.com

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.