Corporate Finance

Earnings are basically the cumulative result of a company’s activity. Earnings per share (EPS) is the amount paid out by a company to its shareholders as income tax. Many more technical terms are also used for a detailed analysis of the financial operations of a company, such as EBITDA and EBIT. EBIT is basically the income effect of certain activities by a company. These include purchases, expenses, gross capital additions, and net income from equity instruments like stock and preferred stock dividends. A company’s profit and loss account are called a profit and loss account and include the interpretation of net income per quarter by the shareholders as an indicator of the health of the company.


Net earnings are also referred to as net profits or gross profit. These are the value of goods sold minus the value of goods purchased, less trade-in values, less cost of goods produced, less selling and administrative expenses. The company’s net earnings are then adjusted for the effects of certain charges, including merchandise charges, certain expenses paid to vendors, and certain taxes. Earnings per share (EPS) are calculated by adding the net earnings of the company to the weighted average assets, less net assets. This is called the diluted weighted average stock price per share, or EPS.

All the financial measures that we use in a management reporting system for corporations are based on net earnings, gross profit, net income, and diluted weighted average stock price per share (EPS). The income statement reports the company’s gross profit, net income, and net earnings per quarter. The statement also provides information on the control and management of these companies. It describes the process by which material changes occur in the price and volume of the company’s goods or services and its market value as determined by various market participants, all of which have an effect on the company’s net income.