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earnings


Definition
Revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Earnings are the reason corporations exist, and are often the single most important determinant of a stock's price. Earnings are important to investors because they give an indication of the company's expected future dividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative earnings as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called income.


Related Terms

dilution -  More

fundamental analysis -  More

normalized earnings -

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growth mutual fund
capitalization of earnings method
asset liability management
transfer earnings
available earnings
basic industry
calculated intangible value (CIV)
retention ratio
capital investment analysis
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gap management
capitalization (cap)
accounting change
gilt edged security
discounted future earnings method
capitalization factor
inflation accounting
shareholder value approach
distributed profits
Standard & Poor's (S&P)
appropriation of retained earnings
sweep account
dividend cover
petrodollars
capital reduction
asset earning power
tax treaty
growth shares
interim dividend
portfolio income
savings liability
fictitious asset
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hire-purchase
discounted cash-flow (DCF)
earnings multiplier
pre-money valuation
maquiladora
Chapter 13
net realizable value of asset
transfer price
pre-tax return on net worth
maturity amount
charge-off
return on average assets
transfer value
earn out
price to earnings growth (PEG) ratio
mutual association
churn
tax sheltered income
price to sales (PS) ratio
economic rent
compensatory finance
backlog
value funds
participating insurance
balance of trade (BOT)
interest coverage ratio
public trust fund
consequential loss
interest rate spread
occupancy cost
corporate citizenship
writeoff
interim statement
fixed charge coverage ratio
damages
bodily injury (BI) coverage
fractal market hypothesis (FMH)
payroll deduction
offshore haven
franchising
other revenues and expenses
free cash-flow
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investment grade fund
call premium
depletion accounting
junior security
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return on investment (ROI)
sales growth percentage
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investment analysis
payout ratio
growth objectives
capitalization rate
growth strategy
passive income
personal income tax
public domain
normalized earnings
crown jewels
defensive sectors
pay as you go
financial leverage
diluted earnings per share
accelerated depreciation
disability insurance
penny stock
personal income
concession
extraordinary item
repatriation
income bond
value investing
obsolescence
write down
quantitative analysis
retail sales
paid-in capital
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cash dividend
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listing requirements
occupation
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intrinsic value
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earn
net income
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preferred stock
inventory
expense
mutual fund
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earnings is ...

... part of the Accounting, Earnings and Stocks subjects.
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