Focus on net income can confuse investors, study finds

09/4/2013 | CFO.com

Most companies emphasize net income in their financial reports, according to a Georgia Tech Financial Analysis Lab report. However this focus can confuse some investors since net income excludes "other comprehensive income" -- one-time gains or losses. The study found that these are sometimes quite substantial. Therefore focus on net income as a main guide to a company's financial performance may be misguided.

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