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.
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