Income Statement Net Income, also known as net profit or the bottom line, is a measure of a business’s financial performance. It is calculated by subtracting a company’s total expenses from its total revenues. It’s an important figure, as it shows whether a business is making more money than it’s spending – and hint at a company’s profitability. In other words, Net Income tells you how much cash the company has earned on its operations during the reporting period. It’s the ultimate measure of success for any business – and if your Net Income isn’t up to snuff, then it might be time to take a look at where you can make improvements!