Search Investopedia

Accounting Earnings

Filed Under »
Dictionary Says

Definition of 'Accounting Earnings'

The amount of money a company has earned during a given period, usually a quarter or year, as reported based on proper accounting standards. Accounting earnings help to measure a company's profitability, but investors should consider not just earnings quantity, but also earnings quality, in evaluating a company's accounting earnings. Earnings quality considers whether earnings are repeatable, controllable and bankable.

Investopedia Says

Investopedia explains 'Accounting Earnings'

When a publicly traded company announces its accounting earnings, investors' reaction to the news will usually cause the stock's price to move. After releasing the earnings report, the company's management will discuss the results with investors in an earnings call. Generally accepted accounting principles (GAAP) allow accounting earnings to be calculated in a specific manner, while some accounting practices can be selected specifically for their impact on creating accounting earnings that support management goals, which may not always coincide with shareholder goals.

Related Definitions

  •

    Earnings

    The amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. Earnings typically refer to after-tax net ...
    Read More »

  • Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs ...
    Read More »

  • Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. ...
    Read More »

    • Earnings Call

      A conference call between the management of a public company, analysts, investors and the media to discuss the financial results during a given reporting period such as a quarter or a ...
      Read More »

    • Earnings Announcement

      An official public statement of a company's profitability for a specific time period, typically a quarter or a year. An earnings announcement is typically made on a specific date during ...
      Read More »

    • Forward Looking

      A business slang term for predictions about future business conditions. Stockholders often ask company management about what they believe will happen in future time periods. While it is ...
      Read More »

    • Quality Of Earnings

      The amount of earnings attributable to higher sales or lower costs rather than artificial profits created by accounting anomalies such as inflation of inventory.
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions