Net earnings

Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Related to Net earnings: net sales, retained earnings


A company's total revenue less its operating expenses, interest paid, depreciation, and taxes. For example, suppose a widget manufacturer earns $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 net income is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $300,000.

Net earnings.

Net earnings, also known as retained earnings, are a corporation's profits after paying all of its expenses. This money is available to pay dividends on common stock, make acquisitions or expand operations without incurring debt or issuing additional stock, or buy back outstanding shares.

References in periodicals archive ?
The company said the net earnings per share grew 8% in the Q2 2017 from second quarter 2016 net earnings.
Net earnings equals payroll disbursements less personal share of employment taxes, plus other labor income and proprietors' income.
Mohawk continued its string of record-breaking quarters with net earnings before nonrecurring charges for the quarter ended Dec.
Net earnings from continuing operations for 2014 included a special charge for a non-cash goodwill impairment of $119 million, which decreased net earnings by $107 million, or $0.
59-221, which held that S corporation passthrough income did not constitute net earnings for self-employment tax purposes.
Based on the above authorities, business expenses, including a partner's unreimbursed business expenses, are subtracted from gross income in arriving at net earnings from self-employment.
1402(a), net earnings from self-employment means "the gross income derived by an individual from any trade or business carried on by such individual, less the deductions allowed by this subtitle which are attributable to such trade or business.
We believe the transactions described must be viewed as jeopardizing a hospital's tax-exempt status for three reasons: they allow inurement of part of a charitable organization's net earnings to the benefit of private individuals; they confer more than incidental benefits on private interests; and they may well violate federal law.