Normalized Earnings

Dictionary Says

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 Says

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.

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