Switch to:
Invesco Ltd (NYSE:IVZ)
Net Income
$968 Mil (TTM As of Sep. 2016)

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax. Invesco Ltd's net income for the six months ended in Sep. 2016 was $241 Mil. Its net income for the trailing twelve months (TTM) ended in Sep. 2016 was $968 Mil.

Net Income is linked to the most popular earnings per share (EPS) number. Invesco Ltd's diluted earnings per share (EPS) for the six months ended in Sep. 2016 was $0.60.


Definition

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax.

Net Income
= Revenue - Cost of Goods Sold - Selling, General, & Admin. Expense - Research & Development - Depreciation, Depletion & Amortization - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Earnings Before Depreciation and Amortization - Depreciation, Depletion & Amortization - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Operating Income - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Pre-Tax Income - Tax Expense + Others

Invesco Ltd's Net Income for the fiscal year that ended in Dec. 2015 is calculated as

Invesco Ltd's Net Income for the quarter that ended in Sep. 2016 is calculated as

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Invesco Ltd Net Income for the trailing twelve months (TTM) ended in Sep. 2016 was $968 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Net income is the most widely cited number in reporting a company’s profitability. It is linked to the most popular earnings-per-share (EPS) number through:

Invesco Ltd's Earnings Per Share (EPS) for the quarter that ended in Sep. 2016 is calculated as

Earnings Per Share (Q: Sep. 2016 )=(Net Income-Preferred Dividends)/Total Shares Outstanding
=(241.2-0)/400.500
=0.60

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

EPS is most useful for companies that have:

• A predictable business
• Consistent accounting methods
• And few restructurings

The dividend paid to preferred stocks needs to be subtracted from the total net income in the calculation of EPS because common stock holders are not entitled to that part of the net income.


Be Aware

Warren Buffett looks for consistency and upward long term trend. Because of share repurchase it is possible for net earnings trend to differ from EPS trend. He preferred net income over EPS. The companies with durable competitive advantage companies report higher % net earnings to total revenues.

Important: If a company is showing net earnings history greater than 20% on total revenues, it is probably benefiting from a long term competitive advantage.

If net earnings is less than 10%, likely to be in a highly competitive business.


Related Terms

Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion & Amortization, Interest Expense, Non-Recurring Items, Earnings Before Depreciation and Amortization, Operating Income, Pre-Tax Income, Tax Provision, Other Income (Minority Interest), Net Income (Discontinued Operations), Earnings Per Share, Total Shares Outstanding, Preferred Dividends


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Invesco Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Net Income 483674482323466730677940988968

Invesco Ltd Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Net Income 275256270260257249202161226241
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK