earning 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 classic literature ?
The royalties on his ignition device for gasolene-engines had mounted up while he lay in prison, and year by year the earning power of his invention increased.
PROFESSIONALS reach their earning power peak in their 40s while salaries drop to their lowest level during their 50s, according to new research.
WORKERS typically reach the peak of their earning power at the age of 38, official statistics show.
Doing re-takes to get five good GCSE's will increase your earning power by pounds 150,000 over your lifetime.
By using Cambrian-enhanced programs to learn to polish their gems before selling them to a broker, artisanal miners will be able to enhance their earning power and thus their quality of life.
Another Oscar winner, Walk The Line star Reese Witherspoon, is in second place, with an earning power of pounds 7.
Moreover, the costs of not pursuing a college education--more than $1 million in lost earning power per person--is far more than we can afford as African Americans.
Years later, TV personality Barbara Walters gave her air time to issue a lame apology dubbed by many as merely a self-serving attempt to preserve her earning power.
Nick Lachey, 32, also wants to be supported by the blonde beauty after her earning power soared in Hollywood.
This article reports on a three-phase study that examined the relationship between earning power and the successful completion of a program of study at an unidentified community college.