Annual Earnings

Annual Earnings

A company's total revenue for a calendar or fiscal year less its annual operating expenses, interest paid, depreciation, and taxes. For example, a widget manufacturer may earn $1,000,000 in total revenue in 2010. The widgets cost $200,000 to make, and the manufacturer's 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 annual earnings are stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $300,000. See also: EBIT.
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A common man might travel safely over three-quarters of the habitable globe, could go round the earth at a cost of less than the annual earnings of a skilled artisan.
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