1. Alternative term for net income.
2. The famous 'bottom line,' being the last line-item in an income statement. In the UK and most other countries, earnings generally represent the balance left after deducting operating expenses, interest charges, taxes, and dividends on the preference shares (preferred stock) but not extraordinary items. In the US, earnings are often used interchangeably with net income (net profit). Earnings of a firm are the paramount measure of its value as seen by the stockmarket which prizes both fast as well as stable earnings growth.
Use 'earnings' in a Sentence
You should try to accurately predict what earnings you could make from a certain project to see if it is worth it.
The earnings were increasing quarter after quarter and this brought great joy to the individuals who were investing in the project.
I wanted to get home, so I could check my earnings for the day and see if I made more than yesterday.
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Notable Quotable
How Management Can Make High Earnings
"The primary test of managerial economic performance is the achievement of a high earnings rate on equity capital employed (without undue leverage, accounting gimmickry, etc.) and not the achievement of consistent gains in earnings per share. In our view, many businesses would be better understood by their shareholder owners, as well as the general public, if managements and financial analysts modified the primary emphasis they place upon earnings per share, and upon yearly changes in that figure."