normalized earnings

Normalized earnings

Earnings that have been adjusted in order to take into account the effect of cycles in the economy.

Normalized Earnings

1. Earnings for a company not including nonrecurring charges and gains. A one-time charge or gain that deeply affects a company's profits or losses for a given period of time might make it appear more or less healthy than it really is; normalized earnings are an indication of a company's true financial health.

2. Earnings that account for seasonal or economic cycles. See also: Seasonally-adjusted.

normalized earnings

Past or forecasted earnings that have been adjusted for cyclical variations. Earnings are generally normalized by using a moving average of earnings per share over a number of successive periods.
References in periodicals archive ?
Normalized earnings attributable to common shareholders in the third quarter of 2015, after adjusting for one-time items and fair value adjustments, were $33 million or $0.
This could be due to a variety of factors including emotional attachment to the business, unwillingness to accept the impact of the risk factors of the business, outside influence from previous market conditions, incorrect conclusion of normalized earnings, comparable transactions, etc.
Investor questions focused on growth prospects, credit quality, capital, normalized earnings power, and the company's efforts to broaden and improve its funding sources.
We estimate that normalized earnings for large banks are 39 percent higher than in 2007 despite the 36 percent decline in share prices.
The most common answer to the valuation question is four to six times normalized earnings before income, taxes, depreciation and amortization (EBITDA).
The normalized earnings are then projected into the indefinite future by dividing them by a capitalization rate.
Final regressions were run on price-to-book, to avoid a few situations where normalized earnings were still at least 12 to 18 months away.
The part of normalized earnings that exceeds such expected returns is classified as "knowledge earnings.
1 million, compared with normalized earnings of $2.
For the full year, normalized earnings from continuing operations increased 13 percent to $0.
The committee said the concept and calculation of normalized earnings belongs to the analysts, not to financial statement preparers.
banks with the largest capital buffer shortfalls will be able to cover the buffer well ahead of the 2019 implementation date assuming uninterrupted normalized earnings, according to a new Fitch Ratings report.
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