Net Income After Taxes - NIAT

What is 'Net Income After Taxes - NIAT'

Net income after taxes (NIAT) is an accounting term, most often found in a company's annual report, that is meant to show the company's definitive "bottom line" for the accounting period. In other words, it shows what the company earned after all its expenses, charge-offs, depreciation and taxes have been subtracted. This calculation is usually shown as both a total dollar amount and a per share calculation.

BREAKING DOWN 'Net Income After Taxes - NIAT'

While the net income after taxes calculation is one of the most solid measures of a company's performance, numerous accounting scandals in recent years have proven it to be less than 100% reliable. Investors evaluating a company's bottom line need to evaluate for legitimate and future expenses that accounting rules permit a company to exclude from their current NIAT calculation.