Earnings

Earnings

Earning is the amount of profit that a company produces during a specific period. It is also known as net profit after interest, taxes, depreciation, and/or amortization . Earning is usually defined as a quarter (3 consecutive months) or a year. A company’s earnings are the main determinant of its share price, because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the future.

Earnings are the most important number studied in a company’s financial statements because they show a company’s profitability. A business’s earning is usually compare to the analyst consensus of earning estimation. Whenever earnings meet with the analyst estimation, a share price will likely to surge and vice versa.  Earning usually found out in the company financial statement as below;

earning

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