Net Income is the total profit or loss that a company earns over a given period of time. This figure is determined by subtracting all expenses, including cost of goods sold, operating expenses, and taxes, from total revenues. A company’s net income is an important metric to keep track of because it helps to determine its overall financial health. By understanding their net income, companies can assess whether they are successful in meeting goals and making profits, allowing them to make any necessary adjustments in order to remain competitive.