earnings


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to earnings: Earnings per share, Earnings Calendar

Earnings

Net income for the company during a period.

Earnings

A company's total revenue less its operating expenses, interest paid, depreciation, and taxes. For example, suppose a widget manufacturer makes $1,000,000 in total revenue. The widgets cost $200,000 to make and his administrative and payroll expenses total $250,000. He also must subtract $50,000 in depreciation on his widget manufacturing equipment and pay $200,000 in taxes. His earnings are stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $300,000.

earnings

The income of a business. Earnings usually refers to aftertax income but may occasionally be used synonymously with pretax income or even revenues.

Earnings.

Corporate earnings are a company's profits after expenses have been paid. Earnings history is one of the key indicators that fundamental analysts use to evaluate a company.

However, there are several ways to report earnings. The broadest is reported earnings, which is defined by generally accepted accounting principles (GAAP). Others include pro forma earnings, EBITDA, free cash flow, and core earnings. Each method produces different results because of the data that is included in the calculation.

The variations make it difficult to make meaningful comparisons among the earnings of different companies, an issue that Standard & Poor's was addressing in developing the concept of core earnings.

Your earnings, on the other hand, include salary and other compensation for work you do, as well as income from assets you own, such as interest, dividends, and capital gains.

earnings

see EARNED INCOME.

earnings

the returns accruing to FACTORS OF PRODUCTION, such as WAGES, SALARIES, FEES and COMMISSIONS, PROFITS, RENTS, DIVIDENDS and INTEREST payments. Pay received by EMPLOYEES in the form of wages, salaries, fees and commissions is the biggest component of earnings. The UK's New Earnings Survey provides data on the earnings of full-time employees. For 2004, the Survey estimated average gross weekly earnings of full-time employees to be around £492. Take-home pay, of course, is lower than this as a result of DIRECT TAXATION (INCOME TAX, NATIONAL INSURANCE CONTRIBUTIONS).
References in periodicals archive ?
In the past two years, venerable corporations with real products, real revenues and real profits have repeatedly seen their stock prices massacred, either because they failed to meet quarterly earnings projections or because they were thought to operate in mature industries where spectacular growth was no longer possible.
Similar earnings data for a comparison group--a nontreatment group with otherwise similar attributes-are tracked over the same period.
Because eliminating the earnings test will generate additional earnings for these groups, it will generate more spending as well.
The adjustments reflect changes in the subsidiary's undistributed earnings and profits rather than its taxable income.
305-5(a), under which participation in corporate growth includes a right to receive (1) distributions of current earnings and (2) proceeds on liquidation.
that it had created a new method for calculating corporate operating earnings.
Since most businesses, including metalcasters, have total value in excess of their net assets, this approach normally is used only in situations where the business is losing money or its earnings do not support its net assets.
The issue is whether the SE earnings reported on M's 1997 Form 1040, for which he received no cash in 1997, are earnings in determining whether he had excess earnings that would reduce his Social Security retirement benefits.
Indeed, there are countless examples of growth companies that generated impressive increases in earnings per share for a sustained period while operating cash flow was negative or negligible before suffering catastrophic earnings disappointments, costing shareholders billions of dollars in losses.
This is why we consider this subject so important that we are featuring a special report in this CPA Letter on Quality of Earnings, to communicate to all our members on their role in this process, whether they are part of the preparer, auditor, regulatory, government or academic communities.
the leading network of financial events for individual and institutional investors, will be providing conference call webcasts, earnings estimates, earnings dates, and earnings releases for Dell Computer Corporation (Nasdaq: DELL), Internet Capital Group (Nasdaq: ICGE), Walt Disney Company (NYSE: DIS), and Walt Disney Internet Group (NYSE: DIG) on Wednesday, November 8th and Thursday, November 9th, 2000.

Full browser ?