Profitability
Net income
What it is
What actually remains at the end, once EVERYTHING is paid: costs, salaries, interest, taxes, depreciation. It's the "bottom line" of the income statement.
How to read it
This is the figure that feeds earnings per share, and therefore valuation. But it can be shaken by one-off events (an asset sale, a write-down) that won't repeat.
What it does not tell you
An ACCOUNTING result, not cash collected. A company can post positive net income while burning cash — which is why operating cash flow matters.
Other measures — Profitability
Educational content. Polaris is not a registered investment adviser and makes no recommendation.