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.

Use earnings in a sentence

You should always know what your earnings are so that you can come up with the best plan for your money.

​ Was this Helpful? YES  NO 9 people found this helpful.

I would recommend a business keep track of the company's earnings by the week, by the month and by the year to get a true reflection of profits.

​ Was this Helpful? YES  NO 3 people found this helpful.

After a long day at the office the salesmen had to send their sales to the accounting department so they could calculate their earnings for the day. This was important because the salesmen were paid on their commission.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
dividend test earnings management