Managerial accounting, a tool used for business decision-making, allows for different methods of calculating net income. The general formula is that sales minus costs equals net income, but there are ...

There are several ways to examine how profitable a company is by using its income statement and accounting balance sheet. Most of the time, the number itself may not mean a lot unless it is compared ...

Net income reflects a company's profitability after subtracting all operating costs and expenses. Investors use net income to assess past and future performance and compare it against peers. A drop in ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

A company's income statement shows how much money it brought in as revenue or sales, how much it spent on expenses, and how much profit or loss -- also called net income -- was generated for a given ...

Gross income is a way of measuring the profit generated from sales alone, using just your total revenue minus the cost to you for the goods you sold. Net income, though, goes a few steps further by ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

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 ...