Earning Tips – What Are Earnings?

Earnings refers to the financial net profits of a company. Earnings per share (EPS) is the measure of earnings that is presented in the statement of earnings of a company. Earnings per trade (EPT) is the measure of earnings that relates to a single transaction in a contract. Other terms for earnings are net income, gross profit, and gross margin.

Earnings ratio is the ratio of net Earnings to total Earnings. The higher the earnings per share (EPS) the lower is the share price. Earnings per trade (EPT) measures the sales price of the business excluding certain expenses incurred in selling the inventory, less the cost of good sold (GST) less the tax on the gross sales. Dividends are the payments received by the Board of Directors from the stock holders. Dividends are usually issued for the first dividend date and paid to the shareholder.

Net income is the total revenue of the company less the cost of goods sold, less the cost of good sold plus retained earnings. In the United States corporate taxation method is generally classified as capital gains tax and net income tax. There are many different types of earning methods. Many companies use a combination of methods for calculating net income.