Understand net income: its definition, calculation method, and its critical role in business decisions and tax reporting.

Operating income is a company's profit after its expenses such as wages, depreciation, and cost of goods sold are deducted.

Net income offers critical insight into a company's financial condition and prospects, telling investors whether a company makes money and giving a forecast of its future health.

Learn what net income means for businesses and individuals, how it's calculated, and why it's a crucial financial metric.