World Library  
Flag as Inappropriate
Email this Article

Earnings

Article Id: WHEBN0000372526
Reproduction Date:

Title: Earnings  
Author: World Heritage Encyclopedia
Language: English
Subject: DHL Supply Chain, Private pension, Sum of perpetuities method, Earnings growth, Growth platforms
Collection: Business Terms
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Earnings

Earnings are the net benefits of a corporation's operation.[1] Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT -- earnings before interest and taxes, EBITDA - earnings before interest, taxes, depreciation, and amortization.

Many alternative terms for earnings are in common use, such as income and profit. These terms in turn have a variety of definitions, depending on their context and the objectives of the authors. For instance, the IRS uses the term profit to describe earnings, whereas for the corporation the profit it reports is the amount left after taxes are taken out. Many economic discussions use principles derived from Karl Marx [2] and Adam Smith.[3] However the rise of the importance of intellectual capital [4] affects such analyses.

Routine earnings

Routine earnings or commodity-based earnings are those that can be achieved by application of assets that are those that can be achieved by any business that employs sufficient capital and manpower. These conditions are commonly assumed in economic analyses of profit (economics)

Non-routine earnings

The use of intellectual property generates non-routine profits. Those are often an order-of-magnitude greater than routine earnings.[5] Non-routine profits are essential to warrant the high investments needed for high-technology industries.

Citations

  1. ^ Robert G. Eccles, Robert H. Herz, E. Mary Keegan, David M. H. Phillips: The Value Reporting Revolution: Moving Beyond the Earnings Game; Price-Waterhouse-Coopers, 2001.
  2. ^ Karl Marx: Das Kapital, Kritik der Politischen Oekonmie; 1967.
  3. ^ Adam Smith: The Wealth of Nations; 1876.
  4. ^ Gordon Smith and Russell Parr: Intellectual Property, 4th edition; Wiley 2005.
  5. ^ John Hand and Baruch Lev (editors): Intangible Assets, Values, Measures. and Risks; Oxford University Press, 2003.
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from Hawaii eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.