earnings


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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 ?
However, discount rates vary widely from company to company and depend largely on the level of risk associated with the earnings being capitalized.
Rather, he reported the amount on his cash-basis 1997 Schedule C as SE earnings and paid the corresponding income and SE taxes.
According to PR Newswire, just 39 percent of Fortune 500 companies issued a cash flow statement in their earnings press release during the first quarter of 2004, albeit a modest improvement from 35 percent a year ago.
Having an effective early warning system in place could obviate the need for managing earnings by giving more of an opportunity for managing operations.
Grace had devised a plan to smooth earnings in its National Medical Care Inc.
Indeed, more than one critic has suggested that the folks who run Time Warner were eager to be bought by a company whose stock price is totally our of line with its earnings because it was the only way to jack up their own stock price and make some money.
Under the earnings test, until they reach 70, workers who begin receiving Social Security benefits at 65 now must give up 33 cents of those benefits for each dollar they earn over a ceiling amount ($14,500 in 1998), and those who retire earlier, at 62, face a lower limit and an even higher 50 percent benefit reduction rate (although a delayed retirement credit partly offsets this by increasing continuing workers' future benefits).
The process, referred to as an earnings crossmatch, entails merging quarterly earnings records reported to the state unemployment insurance agency with data routinely collected by the VR agency.
Thus, subsequent depreciation for earnings and profits purposes would exceed tax depreciation.
Earnings per share topped the previous year's fourth quarter and exceeded the consensus estimate by 2%.
305 regulations do not elaborate on how much of a right to earnings and liquidation proceeds (i.
FEI concerns with S&P's core earnings measure include:

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