Earnings

What is Earnings?

The revenue that remains after certain costs are considered is a company’s net income or earnings. They are sometimes referred to as the bottom line or profit. The fiscal year or the quarter is typically used to measure gains.

Why Earnings Matters

Publicly traded businesses will use these profits to distribute dividends to their shareholders or investors. Retained earnings are any gains after these commitments have been satisfied and are often put back into the business.