Understand net income: its definition, calculation method, and its critical role in business decisions and tax reporting.

Examples of Negative Net Income & Cash Gain in the First Year. Small businesses may have losses in the first year or two of operations because it takes time to establish a market presence and ...

Net income is a useful and essential profitability metric, but it’s not the only one. For example, it does not represent the amount of cash a company generates.

Investors use free cash flow to help assess a company's performance and what lies ahead. Issues in free cash flow often ...

Operating income is a company's profit after its expenses such as wages, depreciation, and cost of goods sold are deducted.