Net Income After Taxes - NIAT


DEFINITION of 'Net Income After Taxes - NIAT'

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.

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  1. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
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    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
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