Join Rudolph Rosenberg for an in-depth discussion in this video Net income, part of Financial Literacy: Reading Financial Reports.
- [Voiceover] Net income is the last line…of the income statement, and as such,…it earned the name of the bottom line.…It is indeed the bottom line of your company…and where you can see if you're making any money,…some money, or good money.…It is one of the most important aspects of your business…and definitely the most important one…of the income statement.…It is the element of the income statement…that needs to perform well, and which you need to focus on…by analyzing its underlying elements,…such as revenue, expenditures,…whether operational or non-operational…to get it to the expected level.…
Net income is how much money the company is making…over a certain period of time…and it is very different from cash.…Net income is money earned, but not yet paid,…and true money made is money in the bank.…To go back to the expression, "revenue is vanity,…"margin is sanity, and cash is reality."…Only cash is reality.…We will deep dive into that topic in the next chapter.…
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- What is a financial statement?
- Reading the balance sheet
- Understanding depreciation, liabilities, and equity
- Reading the income statement
- Understanding revenue, costs, profitability, and net income
- How cash flow works
- Analyzing financial documents with context<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
Skill Level Appropriate for all
1. Financial Statements
2. The Balance Sheet
3. The Income Statement
4. The Cash Flow Statement
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