Net income is an important metric used in business and finance to measure the overall success of a company. It is calculated by subtracting total expenses from total income, resulting in the amount of money a business has left over after all bills are paid. This figure can be further broken down into individual components such as operating income, non-operating income, and equity earnings. Knowing your net income helps you make better decisions about how to manage and grow your business, so it’s essential for companies of all sizes to track and understand it.