Earnings

Earnings are basically the underlying financial benefits of the operation of a company. Earnings are the underlying amount on which corporate taxation is based. For an accounting of certain aspects of internal operations some other more precise terms are also used as EBIT and EBITDA respectively. Earnings per Share (EPS) is the financial measure of Earnings / Paid-In that is calculated as Net Earnings divided by Earnings. Other terms which are often used in Earnings terminology are net income, gross profit and gross margin.

A company obtains profits either by earning interests or by trading the securities (shares). The earnings per share in the Earnings statement of a company is basically the dividends declared to the shareholders. It represents the net profits after deducting the expenses referred to in the Indictment of Divorce. Earnings on the Operating and Other statements of Earnings per Share are not included in the Earnings statement and hence they are termed as Operating earnings and Other profits.

Earnings refers to the sum of all the gross amounts less the expenses and net incomes. The gross amounts include the salaries and other fixed assets, the gross profits and the gross margin. Earnings per share (EPS) is one of the main earnings metrics on which the value of the share of stock is computed. Therefore the EPS represents the overall net income for a company at a given date against the word earnings.