Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

Some people assume that there is one monolithic standard for calculating “net profits” for all purposes. When they hear that a film company has reported a certain amount of net profits for one purpose ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...

Discover how to calculate and understand key income statement ratios to evaluate company performance, including gross margin, ...

Gross Profit vs. Net Profit: What Is the Difference? Your email has been sent A business’s health is measured differently depending on which costs are considered. Gross profit paints a different ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...

Knowing how much you make is helpful when you’re creating a budget, paying taxes or taking out a loan. One metric to consider when making these financial decisions is your annual income. This figure ...

Understanding the difference between revenue and profit is essential in understanding basic and complicated economics. Even if you don’t know exactly what these terms mean, you’ve heard the words in ...