Earnings are the monetary benefits of the operation of a company. In basic economics earnings refer to the profit or gain from a business. Earnings per share (EPS) is the measure of earnings per trade. For an overview of various aspects of company operations various more technical terms are employed as EBIT and EBITDA hence EBIT. Both these terms may be utilized interchangeably with EBIT.

A company’s operating profit is the gross profits it earns from its business operations. The difference between revenues and expenses is called the operating profit. It is the measurement of profits relative to the expenses incurred and net profits after taxes are taken out. Other measures of profit which are calculated using this method are the gross and net income per employee, gross and net profit per transaction, and net income per quarter.

Good earnings per share (EPS) in the case of most publicly traded corporations is the most fundamental measure of profitability. It is calculated by taking the market value of the stock divided by its market price per share. Other technical measures of profitability are profit margin, return on equity, and the gross and net income per customer. The availability of accurate data is the essence of relying on analysts’ forecasts for guidance about the profitability of a company.