profitability
NI Net Income
The bottom line — total profit after all expenses, interest, taxes, and one-time items. What's left for shareholders.
Formula
Net Income = Revenue − All Expenses (COGS, SGA, R&D, Interest, Taxes, etc.)
How to Interpret
Positive net income means the company is profitable on paper. But net income includes non-cash items (stock-based compensation, depreciation) and one-time charges, so it can be misleading. Always cross-check with FCF.
Why It Matters
Net income drives EPS, which drives P/E ratios, which drives stock prices. It's the most-watched profitability metric on Wall Street, even though it's not the most reliable.
Example
A company with $500M in revenue and $430M of total costs reports $70M in net income. That $70M is the profit left after every expense.