Current year's net income definition
/What is Current Year’s Net Income?
Current year’s net income is the profit or loss earned by a business during the current reporting period. It is calculated by subtracting all expenses from revenues for the current year. It is frequently paired with the net income from the immediately preceding year, to give a two-year presentation that users of the income statement can peruse to see year-to-year changes. Changes in this figure can strongly influence a company’s stock price.
How to Calculate Current Year’s Net Income
To calculate current year’s net income, subtract the total of all operating and non-operating expenses from revenues. The revenues in this calculation should be net of all sales allowances and sales returns. The formula is as follows:
Net revenues - Operating expenses - Non-operating expenses = Current year’s net income