Net Income
Select Equity |
Net Income | = | (Rev + Gain) | - | (Exp + Loss) |
Net Income In A Nutshell
Net income is a number you want to monitor for stability or growth. Depending on the company and what they are doing, that number can drop but it should be for reasons such as acquisitions or new equipment. To calculate net income, you will take the company’s whole revenue number and subtract business expenses and operating costs to get a number pre tax. From there you can take out taxes and arrive at the net income number. Taxes are important to watch as well as you want to see favorable tax numbers over the long haul.
Income for a business is important and net income can help by eliminating taxes and more, giving you a true total of income. For example, if you make $10,000 and tax is 10%, your net income would be $9,000. Net income also goes by other names such as earnings or profit attributable. This number is used in the EPS or earnings per share calculation that allows investors to compare apples to apples.
Closer Look at Net Income
Similar to revenue, this will let you gauge whether or not that company is growing or shrinking and if there is potential into the future to make money. MacroAxis has a plethora of tools and research material to help you take this number to a whole other level. Comparing net income across companies can help you find which ones are growing, but you have to ensure they are in the same space and close to the same size because net income growth for a growing company could be exponential compared to an established one. Fundamental research is crucial to investing and net income is one of the more important numbers.
All Fundamental Indicators
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectOther Consideration for investing
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |