normalized earnings
Normalized earnings
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Normalized Earnings
1. Earnings for a company not including nonrecurring charges and gains. A one-time charge or gain that deeply affects a company's profits or losses for a given period of time might make it appear more or less healthy than it really is; normalized earnings are an indication of a company's true financial health.
2. Earnings that account for seasonal or economic cycles. See also: Seasonally-adjusted.
2. Earnings that account for seasonal or economic cycles. See also: Seasonally-adjusted.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
normalized earnings
Past or forecasted earnings that have been adjusted for cyclical variations. Earnings are generally normalized by using a moving average of earnings per share over a number of successive periods.
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.