Net Income This number represents (at least theoretically) the company’s profit after all expenses have been paid, and it’s the number most companies highlight in their quarterly earnings releases. As we saw in the Mike’s hot dog example, net income may or may not be a good representation of the amount of cash the company has generated. For that, we’ll need to look at the statement of cash flows. Although net income is the number you’ll most often see companies tout in their press releases, don’t forget that it can be wildly distorted by one-time charges and/or investment income.
