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In simple terms, net pay is the money you take home directly from your paycheck. For example, if someone gets paid $1,200 per week but $160 is taken away by deductions, that person's net pay is ...
Net profit: To calculate net profit for a venture (such as a company, division, or project), subtract all costs, including a fair share of total corporate overheads, from the gross revenues or turnover.
How To Calculate Net Income. Based on the definition of “net income,” you calculate it by looking at your total revenue and subtracting any and all expenses.. Gross profit takes your total ...
Some investors prefer using free cash flow instead of net income to measure a company's financial performance and calculate the intrinsic value of the company, because free cash flow is more difficult to manipulate than net income. The problems with this approach are discussed in the cash flow and return of capital articles. [5]
Net Income per employee (NIPE) is a company's net income divided by the number of employees. This number shows the company how efficient it is with its employees. Theoretically, the higher the net income per employee the better. Aside from increasing the productivity of employees, this number could be increased by a number of other factors.
Net Worth = Assets - Liabilities. For example, if your total assets equal $600,000 and your total liabilities equal $400,000, your net worth is $200,000.