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 periodicals archive ?
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.
Also, if after an Acquiring Person controls Intermet's Board of Directors, Intermet is involved in a merger or sells more than 50% of its assets or earning power (or has entered an agreement to do any of the foregoing) and, in the case of a merger or similar transaction, the transaction is with the Acquiring Person or the Acquiring Person will receive different treatment than all other shareholders, each Right will entitle its holder to purchase, for the exercise price, a number of shares of common stock of the Acquiring Person having a market value of twice the exercise price" rather than:
Although past studies have indicated the generally lower earning power of women throughout society, this survey demonstrates that blind and visually impaired women are doubly disadvantaged because of their sex and their disability," according to Katherine Nelson, M.
Featured in TWINS, BROKER, and the OC Register, her association, Earning Power, won Stevie Award recognition for Women's Business Association of the Year 2005.
When a 12th-grader receives a diploma that actually represents an eighth- grade education, and is relegated to an earning power that is 40 percent less than his high school-graduated grandfather, maybe this is an act of war requiring subjugated servitude
9 To maximize my earning power through a commitment to career development, technological literacy, and professional excellence
It followed a series of e-mails to Scots promising to increase their earning power by awarding them top educational qualifications - without passing any exams.
The factors used in this determination include the company's net worth (the fair market value of its assets), its prospective earning power, its dividend-paying capacity, the economic outlook of the company's industry, the company's position in the industry and company management.
DETROIT, May 11 /PRNewswire/ -- Continental Airlines has joined the GM MasterCard as a corporate parnter, enabling GM Card holders to double their earning power toward a new GM car or truck when they book air travel on Continental, announced Ronald N.
Disability income insurance is designed to protect earning power," said Etta Lowery, National Director of Long Term Care and Disability Income Insurance at First Command.
But scientists at the Universities of Michigan and Pennsylvania found that only height at the age of 16 influenced earning power.