Earnings

Earnings refer to the profits or income that an individual or entity generates from their business activities, investments, or other sources. In a business context, earnings are often calculated as revenue minus expenses, taxes, and costs, reflecting the company’s profitability over a specific period, typically measured quarterly or annually. For individuals, earnings can include wages, salary, bonuses, and any additional income derived from investments or secondary sources. Earnings are a key indicator of financial performance and health, influencing decisions made by investors, analysts, and stakeholders. They are reported in financial statements, such as the income statement, and can be categorized into gross earnings (total revenues or income) and net earnings (what remains after all expenses are deducted). Earnings can also be expressed as earnings per share (EPS) in corporate finance, which provides insight into a company’s profitability on a per-share basis for its shareholders.