Earnings Are Everything!
Earnings are basically the underlying balance sheet values of a company. The concept of earnings is most probably associated with the bookkeeping and payroll accounting systems, where all financial transactions are recorded in the books. However, earnings are an important aspect of any business transaction or operation. It reflects the total income of the company through all the sales, purchases, revenue, rentals, disbursements, and net income earned.
There are different concepts that affect the bottom line of the company’s profit and loss situation. The gross profit / loss indicator, gross margin, gross circulation / turnover, free cash flow, equity, retained earnings, net income, net worth, and reinvestment are a few of the concepts that play a significant role in determining the earnings of a company. In addition, some companies use dividends and share capital. A company’s net income is also affected by many other factors such as management policies, investment plans, and debt structure. For a detailed analysis of some common aspects of organizational operations, several other technical terms are often used as EBITDA and EBITL.
The concept of gross earnings is basically related to the earnings of the company divided by its market value. The concept of living wage is the amount paid to the employees for their services that forms the basis of their compensation. Living wages are usually considered in the context of the overall profitability of the company.