{"id":10260,"date":"2023-03-29T12:45:38","date_gmt":"2023-03-29T07:15:38","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10260"},"modified":"2023-03-29T12:46:28","modified_gmt":"2023-03-29T07:16:28","slug":"net-income","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/net-income\/","title":{"rendered":"Net Income &#8211; Meaning, Formula with Examples and More"},"content":{"rendered":"\n<p>The profitability of businesses needs to be measured regularly to keep lenders and investors assured about financial progress. Keeping track of financial well-being also helps to come up with strategies for the future. Net income is among the most efficient ways to monitor the growth and performance of a business.<\/p>\n\n\n\n<p>But what is net income? Is it the same as <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-ebitda-meaning-formula-and-calculation\/\">EBITDA<\/a> or net profit? Let\u2019s find out!<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"532\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-20-1024x532.png\" alt=\"\" class=\"wp-image-10264\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-20-1024x532.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-20-300x156.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-20.png 1440w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-20-300x156@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#What-is-net-income\" title=\"What is net income?\">What is net income?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#Net-Income-Quick-Highlights\" title=\"Net Income &#8211; Quick Highlights\">Net Income &#8211; Quick Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#Net-income-formula\" title=\"Net income formula\">Net income formula<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#Net-profit-margin\" title=\"Net profit margin\">Net profit margin<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#Gross-income-vs-net-income\" title=\"Gross income vs net income\">Gross income vs net income<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#Net-income-vs-net-profit\" title=\"Net income vs net profit\">Net income vs net profit<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#EBITDA-vs-net-income\" title=\"EBITDA vs net income\">EBITDA vs net income<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/net-income\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-net-income\"><\/span><strong>What is net income?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Net income is the total amount remaining with a company or an individual after deducting all taxes, interest, and expenses. It is also known as net earnings and measures the company&#8217;s profitability. It is mentioned in the income statement of the company.&nbsp;<\/p>\n\n\n\n<p>Net income calculation subtracts <a href=\"https:\/\/www.tickertape.in\/glossary\/depreciation-meaning\/\">depreciation<\/a>, amortisation, taxes, interest expenses, COGS and other expenses from sales revenue. While it is a widely-used metric for businesses, net income can also be used to describe an individual\u2019s income after deductions and taxes.<\/p>\n\n\n\n<p>Historically, accountants have included it at the bottom of income statements, and thus, it has also been nicknamed \u201cbottom line.\u201d<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-d832f560\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Net-Income-Quick-Highlights\"><\/span><strong>Net Income<\/strong> &#8211; Quick Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Net income refers to the total amount a company has for its shareholders or is the amount left after all taxes, interests, and expenses.<\/li>\n\n\n\n<li>The net income formula subtracts all expenses and the cost of goods sold from the <a href=\"https:\/\/www.tickertape.in\/glossary\/total-revenue\/\">total revenue<\/a>.<\/li>\n\n\n\n<li>Net profit margin expresses the net income as a percentage of the revenue.<\/li>\n\n\n\n<li>Conceptually, net income differs from gross income, net profit, and EBITDA.<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Net-income-formula\"><\/span><strong>Net income formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Net income is the amount of money a business has left to invest in new equipment and projects, pay shareholders, clear debts or save for a future contingency.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"586\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-21-1024x586.png\" alt=\"\" class=\"wp-image-10265\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-21-1024x586.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-21-300x172.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-21-1536x878.png 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-21-900x515.png 900w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-21-300x172@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/www.paretolabs.com<\/figcaption><\/figure><\/div>\n\n\n<p>Here is the net income formula:<\/p>\n\n\n\n<p><strong>Net income<\/strong><strong>= Sales revenue \u2013 Cost of goods sold \u2013 Expenses<\/strong><\/p>\n\n\n\n<p>Or,<\/p>\n\n\n\n<p><strong>Net income<\/strong><strong> = Gross income \u2013 Expenses<\/strong><\/p>\n\n\n\n<p>Another simplistic way to calculate net income is below:<\/p>\n\n\n\n<p><strong>Net income<\/strong><strong> = Total revenues \u2013 Total expenses<\/strong><\/p>\n\n\n\n<p>The value of net income can be both positive and negative. A positive net income indicates that revenues are higher than expenses, and thus the company is profitable. A negative net income, also referred to as net loss, means expenses are higher than revenues. It means the company is registering losses.&nbsp;<\/p>\n\n\n\n<p>The formulae above can help calculate a company&#8217;s net income for any period, such as monthly, quarterly, or annually.&nbsp;<\/p>\n\n\n\n<p>Here is an example to illustrate how net income is calculated<\/p>\n\n\n\n<p>Assume a business needs to calculate its annual net income based on the following information:<\/p>\n\n\n\n<p><strong>Total revenues: <\/strong>Rs. 6,00,00,000<\/p>\n\n\n\n<p><strong>Cost of goods sold (COGS):<\/strong> Rs. 2,00,00,000<\/p>\n\n\n\n<p><strong>Rent: <\/strong>Rs. 40,00,000<\/p>\n\n\n\n<p><strong>Utilities:<\/strong> Rs. 20,00,000<\/p>\n\n\n\n<p><strong>Salaries:<\/strong> Rs. 1,00,00,000<\/p>\n\n\n\n<p><strong>Marketing:<\/strong> Rs. 10,00,000<\/p>\n\n\n\n<p><strong>Interest payable:<\/strong> Rs. 10,00,000<\/p>\n\n\n\n<p><strong>The first step would be to calculate gross income:<\/strong><\/p>\n\n\n\n<p><strong>Gross income = Total revenues- COGS<\/strong><\/p>\n\n\n\n<p>Gross income for the business above = Rs. 4,00,00,000<\/p>\n\n\n\n<p>Total expenses for the year = Rs. 1,80,00,000<\/p>\n\n\n\n<p>Net income = Rs. 4,00,00,000 \u2013 Rs. 1,80,00,000 = Rs. 2,20,00,000<\/p>\n\n\n\n<p>The annual net income for the business is Rs. 2,20,00,000<\/p>\n\n\n\n<p>Use Tickertape <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">Stock<\/a> Screener to find the net income of a company. Open the <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=glossary&amp;utm_medium=article&amp;utm_campaign=\" target=\"_blank\" rel=\"noreferrer noopener\">Stock Screener<\/a>, click &#8216;Add Filter&#8217; and select &#8216;Net Income&#8217;. Along with the net income, you can use other parameters to analyse a company better. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"507\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.34.28-PM-1024x507.png\" alt=\"\" class=\"wp-image-10261\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.34.28-PM-1024x507.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.34.28-PM-300x148.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.34.28-PM-1536x760.png 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.34.28-PM-1024x507@2x.png 2048w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.34.28-PM-300x148@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<h2><span class=\"ez-toc-section\" id=\"Net-profit-margin\"><\/span><strong>Net profit margin<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Net profit margin expresses the net income of a business as a percentage of its revenue. It is the ratio of net income to the total revenues of a company, individual, or business segment.&nbsp;<\/p>\n\n\n\n<p>Net profit margin helps investors assess whether enough profit is being generated from the sales of a company and if the costs of operation and overheads are in control. It thus helps to analyse the financial well-being of a company.<\/p>\n\n\n\n<p>Since net profit margin is a percentage and not a rupee value, it can be used to compare the financial health of two companies, irrespective of their scale and size. However, the comparison must be made for companies from the same industry.&nbsp;<\/p>\n\n\n\n<p><strong>Net profit margin = [<\/strong><strong>Net income<\/strong><strong>\/ Total revenue] * 100<\/strong><\/p>\n\n\n\n<p>In the example above,<\/p>\n\n\n\n<p><strong>Net profit margin = [2,20,00,000\/6,00,00,000] * 100 = 36.66%<\/strong><\/p>\n\n\n\n<p>Hence,<\/p>\n\n\n\n<p>The net profit margin of the company is 36.66% of its revenue.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Gross-income-vs-net-income\"><\/span><strong>Gross income vs net income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-medium\"><img decoding=\"async\" loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-19-300x225.png\" alt=\"\" class=\"wp-image-10263\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-19-300x225.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-19-1024x768.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-19.png 1136w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-19-300x225@2x.png 600w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption class=\"wp-element-caption\">Image Source: https:\/\/www.businessinsider.com<\/figcaption><\/figure><\/div>\n\n\n<p>Both gross income and net income are important aspects of personal and organisational finance. They both are crucial for decision-making and help to strategise for the future. Using these metrics, businesses can make important decisions such as increasing the prices of products, reducing expenses and determining the types of projects the company should be focusing on.<\/p>\n\n\n\n<p>However, gross and net income offer different perspectives regarding the success of a business.<\/p>\n\n\n\n<p>Gross income is the income that remains after subtracting the cost of production from total revenues. In other words, it is the difference between revenue and the cost of goods sold.<\/p>\n\n\n\n<p>Net income, however, is the income after subtracting all expenses and taxes. This includes administrative, operational and all other expenses. Net income is a more efficient metric that helps determine a company&#8217;s profitability and efficiency.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Net-income-vs-net-profit\"><\/span><strong>Net income vs net profit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Net profit and net income are line items on the income statement of a business.&nbsp;<\/p>\n\n\n\n<p>They are similar as they show how much money has been earned after reducing expenses and COGS. Both of them enable businesses to make financial forecasts. However, they are different in their use and calculation.<\/p>\n\n\n\n<p>Net income measures the amount of money available to shareholders. However, not all businesses have shareholders. These businesses calculate only net profit.&nbsp;<\/p>\n\n\n\n<p>On the other hand, public entities calculate both net profit and net income. They use the NI figure to calculate earnings per share. On the contrary, all businesses use the net profit to determine their profitability over a specific period.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"EBITDA-vs-net-income\"><\/span><strong>EBITDA vs net income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>EBITDA is an abbreviation for \u2018earnings before interests, taxes, depreciation and amortisation\u2019. Net income is the opposite of EBITDA as it calculates the earnings after deducting all the expenses, including interests, taxes, depreciation and amortisation.&nbsp;<\/p>\n\n\n\n<p>While EBITDA is used to determine the company&#8217;s earning potential, net income is used to calculate the actual earnings of a company, and when concerning stocks, the earnings per share.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Net income is one of the most important and widely used metrics of profitability of a business. It is the revenue recorded after subtracting expenses, interest and taxes. Additionally, it is referred to as the \u2018bottom line\u2019 and helps businesses to determine their future strategies. Study all components of a company\u2019s financial statements to determine its net income. On Tickertape, you can visit the &#8216;<a href=\"https:\/\/www.tickertape.in\/stocks\/reliance-industries-RELI\/financials?checklist=basic&amp;statement=cashflow&amp;view=normal&amp;period=annual&amp;utm_source=glossary&amp;utm_medium=article&amp;utm_campaign=\" target=\"_blank\" rel=\"noreferrer noopener\">Financials<\/a>&#8216; tab of your preferred stock and get their financial details easily. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"505\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.38.16-PM-1024x505.png\" alt=\"\" class=\"wp-image-10262\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.38.16-PM-1024x505.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.38.16-PM-300x148.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.38.16-PM-1536x758.png 1536w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.38.16-PM-1024x505@2x.png 2048w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-29-at-12.38.16-PM-300x148@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-a8b3622e uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-88da492e\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Is net income calculated before or after taxes?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Net income is calculated by deducting all expenses, including taxes.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-4f7a8f0d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Are net sales the same as net income?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">No, net sales refer to a company&#8217;s total revenue before any deductions. It also includes the cost of goods sold. Net income is calculated by subtracting the total expenses of the company from net sales.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-b9cb166d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How to calculate profit margin when net income is negative?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Profit margin shows what percentage of revenue is the net income. The method of calculation remains the same if net income is negative. This will yield a negative percentage value<strong>.<\/strong><\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The profitability of businesses needs to be measured regularly to keep lenders and investors assured about financial progress. Net income is among the most efficient ways to monitor the growth and performance of a business.<\/p>\n","protected":false},"author":96,"featured_media":10267,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/08-2-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Nikitha","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"The profitability of businesses needs to be measured regularly to keep lenders and investors assured about financial progress. Net income is among the most efficient ways to monitor the growth and performance of a business.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10260"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/96"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10260"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10260\/revisions"}],"predecessor-version":[{"id":10270,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10260\/revisions\/10270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/10267"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}