Earnings - Definition

Earnings is defined as the Amount of profit any business operation can generate. It is one of the deciding factors that drive the share price of a company. For this reason company quarterly earnings releases are eagerly awaited by financial analysts and investors in Order to assess the performance of a company over the previous three months. It is also an indication of future prospects. Earnings typically refer to After-tax net income. The simple formula is as follows:

Earnings = Total Revenue - All Expenses - Tax payable



Terms near "Earnings"

Earnings adequacy ratio
Earnings allowance
Earnings announcement
Earnings before Interest after Taxes (EBIAT)
Earnings Before Interest and Taxes (EBIT)
Earnings before tax
Earnings calendar
Earnings cap
Earnings credit
Earnings credit rate (ECR)
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