earning power

(redirected from Earnings Power)

Earning power

Earnings before interest and taxes (EBIT) divided by total assets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Earning Power

1. See: Earnings per share.

2. The ability of a company to make a profit on its operations. There is no single way to estimate a company's earning power, and indeed it varies from company to company. For example, a well-established company's earning power may be best estimated by its dividend yield. On the other hand, one may determine a start-up's earning power through other metrics, like return on assets.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

earning power

1. The earnings that an asset could produce under optimal conditions. For example, AT&T may currently be earning $2.50 per share; however, under optimal conditions each share could have earnings of $3.75.
2. The expected yield on a security.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
In the current environment, it's clear the market is improperly discounting our growing earnings power, which led us to repurchase $376 million of our shares in the second quarter at an average price of less than 90% of adjusted book value per share and high-teens returns.
The Upjohn-Mylan merger is "strategically sound," but the earnings power of both Pfizer and the company being spun off is weaker than expected, Risinger said.
"I am pleased to announce this increase in our quarterly dividend, which is one of the benefits of Hanmi's strong financial performance and the passage of the Tax Cuts and Jobs Act that significantly enhances the earnings power of the Company," said Mr.
Also, AllianceBernstein said that the decrease in the distribution payments will align the funds monthly distributions with their current and projected earnings power, they stated.
Because of the accelerated closing timeframe, the third quarter will now fully reflect the increased earnings power from these loans as well as the beneficial impact of greater scale and capital deployment on our ability to generate core earnings and dividends."
The authors explain the basics of accrual accounting, reporting merchandising transactions, inventory cost flow, accounts receivables, capital asset depreciation, internal control activities, long-term liabilities, corporate stock transactions, and earnings power. The ninth edition adds sections on rising international economic crime and companies issuing 30-year bonds, and provides the 2011 financial statements for Apple, PepsiCo, Coca-Cola, Amazon, and WalMart.
In March, BB&T said that the Fed had objected to its capital plan based on qualitative concerns that the bank said were not related to its 'capital strength, earnings power or financial condition.' The bank was required to submit a new plan under Fed rules.
"Profit for the period attributable to owners of the parent" was 151.5 billion yen, up 36% from the same period last year, while basic profit, which excludes special profit/loss and indicates after-tax actual earnings power, for the second quarter (July-September 2011) continued to be strong as in the prior quarter and remained at the 70 billion yen level.
These safety instruments offer an unprecedented mix of earnings power and principal protection and show how much Wall Street cares about consumers."
Buffett said earlier this month he was looking for more big acquisitions to boost Berkshire's earnings power.
The Individual Rating, according to Fitch, reflects DIB's strong franchise, earnings power and satisfactory liquidity position.