earning power

(redirected from Earnings Power)

Earning power

Earnings before interest and taxes (EBIT) divided by total assets.

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.

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.
References in periodicals archive ?
Macquarie analyst Tim Nollen sees increased earnings power for Netflix as it moves toward more originals and thinks the company is positioned to grow alongside government incentives in many countries to expand high-speed internet access.
The joint firm will have greater market presence, growth potential and earnings power.
Keith Horowitz, an analyst with Citigroup Inc said, 'One could take the view that even if it is USD32bn of costs, when you factor in the earnings power and the time it will take to resolve these issues it appears to be manageable.
In addition, the group boasts high earnings power and capital adequacy which are commensurate with the ratings.
According to the experts, Uniqa's main problem is the small earnings power which is a result of the weak performance in the property and casualty insurance business.
The individual rating reflected QIB's position as the leading Islamic franchise with a nearly 50 per cent share of Islamic assets and nine per cent overall market share, in addition to the bank's high earnings power from core banking and healthy capital ratios.
However, the near-term stock upside remains somewhat limited as ADM's stock price now better reflects its earnings power.
The kingdom s newest mobile phone operator also expects to record a positive earnings before interest, taxes, depreciation and amortization, or EBITDA, a key measure of a firm s raw earnings power, the company s chief operating officer Ismael Fikri said.
It is comforting to note the resilience and underlying strength of the bank's fundamental earnings power achieved through the collective effort of management and staff to navigate the business forward in these turbulent times", said Fahad Al Rajaan, chairman.
Grossman said the company's earnings power is shrinking each time it sheds assets to pay down its debts.
By continuing to broaden its product line, Apple should generate sales and earnings power over the next 12 months.
Unless Toshiba significantly improves the competitiveness of its strategic business units, such as semiconductors and digital media, a fundamental strengthening in its earnings power is unlikely,'' S&P's credit analyst Fusako Nagao said.