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.
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.
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
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
The use of intellectual property generates non-routine profits.
business that
employs sufficient capital and manpower.
These conditions are commonly assumed in economic analyses
of profit (economics
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.
routine earnings.[5] Non-routine profits are essential to warrant
the high investments needed for high-technology industries.
This article was originally from wikipedia
