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Calculating A Company's Net Income And Why It Matters

By Motley Fool Staff – Updated Apr 29, 2025 at 10:22PM

Key Points

  • Net income reflects a company's profitability after subtracting all operating costs and expenses.
  • Investors use net income to assess past and future performance and compare it against peers.
  • A drop in net income signals a need for deeper financial analysis.
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