Net Income, also known as net profit, is a company’s total earnings after subtracting all its expenses. It’s the number that appears on a company’s financials to indicate how much money it brings in minus how much money it spends. Expenses include costs related to running the business such as payroll, taxes, advertising, and research & development. Revenue is income generated from the sale of products or services. Net income is an important metric for investors because it tells them how profitable the company is over time. It’s also the number used to calculate the company’s return on investment (ROI). In other words, net income gives you an idea of how efficiently the company is operating and whether it will be able to withstand economic downturns.