Earnings - Financial definition
Concise definition of the term earnings
Earnings refer to the net income generated by a company after deducting expenses from its total revenue.
Comprehensive definition of the term earnings
In corporate finance, earnings represent the financial performance of a company over a specific period, often reported quarterly or annually. It reflects the profitability of the business and is a crucial metric for investors and analysts to assess the company's health and growth potential.
Earnings can be influenced by various factors such as revenue streams, cost management, tax liabilities, and non-recurring items. Understanding earnings trends and comparing them with industry peers is essential for making informed investment decisions and evaluating a company's overall financial strength.