Normalized net income (NNI) is a financial calculation that adjusts a company’s net income to exclude non-recurring or unusual items. For instance, a company might exclude a one-time gain from the sale of an asset or a large restructuring charge when calculating its NNI.
NNI is a useful metric for investors and analysts because it provides a more accurate representation of a company’s ongoing profitability. By excluding non-recurring items, NNI can help investors to identify companies that are consistently profitable and avoid those that are dependent on one-time events.