Financial Statement Net Income is the bottom line of a company’s financial statement. It is calculated by subtracting all expenses, including taxes, from the total revenue earned by the company in a given accounting period. This gives an accurate picture of the firm’s overall profitability and allows investors to assess the company’s performance over time. Put simply, it is a measure of what you’ve done with the money you have, and answers the question: “Did we make or lose money this year?” Knowing your Net Income gives businesses both small and large a great way to learn and grow.