What financial metric indicates a company's profitability after all expenses?

Net income is the financial metric that represents a company's profitability after all expenses have been deducted from total revenue. This includes operating expenses, interest, taxes, and any other expenses the company incurs during its operations. By arriving at net income, stakeholders can assess the true profitability of a company, reflecting its ability to generate profit after accounting for all costs associated with running the business.

Gross profit focuses solely on the revenue remaining after deducting the cost of goods sold, but it does not consider operating expenses or taxes, which are critical to understanding overall profitability. Operating income includes costs associated with regular business operations but excludes interest and taxes, making it a measure of operational efficiency rather than total profitability. Earnings Before Interest and Taxes (EBIT) is another important metric that indicates profitability from operations before accounting for interest and tax expenses, yet it too does not provide the full picture of a company's financial health since it excludes these crucial costs. Hence, net income, by accounting for all expenses, is the definitive measure regarding a company's overall profitability.