Translation: Net Income = Net Income.

Simplified definition: It is the "bottom line" (Bottom Line), which is what remains in the "pocket" of the company after paying everything: production costs, salaries, taxes, and even loan interest.

What does it mean to you?

  • Real profit: This is the number that determines the "value" of the company's actual effectiveness and its ability to distribute profits to shareholders.

Common question: Why is it called the "bottom line"?

  • Answer: Because it is the final number that closes the list, and everything before it was just sub-calculations.