Annual net income refers to the total profit or earnings generated by a business or individual during a specific fiscal year after deducting all expenses, taxes, and other costs. It represents the amount of money left over after accounting for all the expenses associated with running the business or earning income. Annual net income is a key financial metric used to assess the profitability and financial performance of an entity over a given period of time. It provides a measure of the entity's overall financial success and is often used for decision-making, financial planning, and reporting purposes.