earnings

1. Alternative term for net income.

2. The famous 'bottom line,' being the last line-item in an income statement. In the UK and most other countries, earnings generally represent the balance left after deducting operating expenses, interest charges, taxes, and dividends on the preference shares (preferred stock) but not extraordinary items. In the US, earnings are often used interchangeably with net income (net profit). Earnings of a firm are the paramount measure of its value as seen by the stockmarket which prizes both fast as well as stable earnings growth.

When the U.S. dollar is weak, U.S. manufacturers have a competitive advantage -- they don't have to lower prices on exports to boost sales and capture market share overseas. Just by keeping prices steady, they benefit because the weak dollar means foreign buyers won't have to pay as much in their respective currencies. The profit margin on each unit is constant, so earnings go up. (from November 2004)

• Emphasis on Dilutive or Anti-Dilutive Earnings is Dangerous
• What Makes a Successful Manager?
• Incremental Earnings with Incremental Investments
• How Management Can Make High Earnings
• Conservative Accounting Standards Still Exist
• CEOs Maximizing Share Price in the Present
• How a Weak US Dollar Can be Good
• What Counts Most in a Merger
• Quadrupling Earnings