Normalized Earnings

AAA

DEFINITION of 'Normalized Earnings'

1. Earnings adjusted for cyclical ups and downs in the economy.

2. On the balance sheet, earnings adjusted to remove unusual or one-time influences.

INVESTOPEDIA EXPLAINS 'Normalized Earnings'

An example would be removing a land sale in which a large capital gain was realized.

Normalized earnings help show the true earnings from operations.

RELATED TERMS
  1. Non-GAAP Earnings

    An alternative earnings measure of the performance of a company. ...
  2. Earnings

    The amount of profit that a company produces during a specific ...
  3. Bottom Line

    Refers to a company's net earnings, net income or earnings per ...
  4. Normal Profit

    When economic profit is equal to zero; this occurs when the difference ...
  5. Accumulated Earnings and Profits

    An accounting term applicable to stockholders of closely held ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
Related Articles
  1. Reading The Balance Sheet
    Investing Basics

    Reading The Balance Sheet

  2. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

  3. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

  4. SEC Filings: Forms You Need To Know
    Investing Basics

    SEC Filings: Forms You Need To Know

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center