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The total earnings of a company after subtracting all expenses from revenue.
Net income, or profit, is what remains after a company deducts all its expenses, including cost of goods sold, operating expenses, taxes, and interest, from its total revenue. This figure is crucial as it represents the company’s profitability, influencing stock prices, dividend policies, and overall financial health assessments. Investors use net income to evaluate a company’s performance over time.
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