Gross profit and net income are widely followed measures of a company’s profitability. They both gauge performance but in different ways by focusing on all or only a select few expenses. Gross profit ...

The income statement is a step-by-step guide that reveals how much income your business makes and where it goes. The net sales figure is what remains after all sales discounts, returns and allowances ...

Gross income is total revenue minus production costs; it doesn't include other business expenses. Net income subtracts all costs from gross, showing true profit. Understanding gross vs. net helps ...

In simple terms, a company's net income is its total revenue minus all business expenses, taxes and debt payments. A business with costs greater than the amount of revenue it brings in over the course ...

This guide was reviewed by a Business News Daily editor to ensure it provides comprehensive and accurate information to aid your buying decision. Net and gross income are two of the most important ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing. Dr.

If you’ve been using the terms “revenue” and “income” interchangeably, it’s time to stop. Although they have much in common, there are crucial differences between these two financial terms. Business ...

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, ...

Annual income is the amount of money you bring home each year prior to deductions. For example, if your base pay is $45,000 per year, that’s your annual income even though your take-home pay is less ...

The net investment income tax (NIIT) adds a 3.8% tax on capital gains and investment income. NIIT thresholds have remained fixed since 2013, so more taxpayers are feeling its impact. Large capital ...