Which financial metric indicates the profit after all expenses have been deducted?

Net Income is the financial metric that indicates the profit after all expenses have been deducted from total revenue. It represents the bottom line profit of a company and provides a clear picture of the company’s financial health after accounting for all operational costs, taxes, interest, and other expenses. A positive net income signifies that a company has made a profit, while a negative net income indicates a loss.

Understanding this metric is crucial for stakeholders, as it reflects the actual profitability of the company in real-time and is often used for assessing the company’s overall performance over a period. In financial reporting, net income is typically found on the income statement and is essential for determining earnings per share, a key metric for investors.