Net Income After Taxes

A company’s net income after taxes is effectively the same as its net income. It is derived by deducting all expenses from gross revenues, including Cost of Good Sold, interest, depreciation, tax, amortisation, selling, general and admin expenses. While financial analysts also like to look at a company’s pre-tax income as a gauge of performance, net income after tax is a true gauge of its profitability and the extent to which it is able to fund capital distributions from the business, for example.