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Net income growth is the annualized rate of growth over the previous year's net income. Net income growth is the percentage gain (or loss) in net income over time. It is a good indicator of the rate at which companies have grown profits . Stocks with higher net income growth rates are typically more desirable than those with lower net income growth rates.
Definition 1. Also known as earnings or profit, net income is what it''s really all about: making money. Thus, net income is probably the most closely watched item in a company''s financial reports. Unfortunately, net income is subject to a good many judgments by both corporate managers and accountants, as well as various charges that exist largely on paper.