Net Income is also known as Net Profit, Profit, Income, Bottom Line and related to Net Profit Margin. This is the last entry of the Income Statement and represents total earnings of the period of performance (e.g. quarterly, annually, etc.). This is the Bottom Line and if the number is negative it means the company is losing money (it’s not profitable).
Example: Suppose a company’s has the following Income Statement entries:
Sales = $100,000 (a.k.a. Top Line, Revenue, or Credit Sales)
Net Income = $58,000
The Net Profit Margin = Ratio = (Net Income) ÷ (Top Line) = $58,000/$100,000 = 0.58 or 58%