Quality Of Earnings

Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Quality Of Earnings'

Quality of earnings is considered poor during times of high inflation. Also, earnings that are calculated conservatively are considered to have higher quality than those calculated by aggressive accounting policies.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Cookie Jar Accounting

    An accounting ...
  2. Earnings

    The amount of ...
  3. Generally Accepted Accounting ...

    The common set ...
  4. Earnings Management

    The use of ...
  5. Liquidator

    In the most ...
  6. Economic Profit (Or Loss)

    The difference ...
  7. Profit

    A financial ...
  8. Operating Income

    The amount of ...
  9. Price-Earnings Ratio - P/E Ratio

    A valuation ...
  10. Earnings Before Interest, Tax, ...

    An accounting ...

Articles Of Interest

  1. How To Evaluate The Quality Of EPS

    Companies can manipulate their numbers, so you need to learn how to determine the accuracy of EPS.
  2. Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.
  3. The 5 Types Of Earnings Per Share

    A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not.
  4. The Impact Of Combining The U.S. GAAP And IFRS

    The convergence of accounting standards is changing the attitudes of CPAs and CFOs toward harmonization of international accounting.
  5. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  6. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  7. CPA, CFA Or CFP® - Pick Your Abbreviation Carefully

    A couple of letters can mean a big difference. Find out which designation you need and how to get it.
  8. Using Enterprise Value To Compare Companies

    Learn how enterprise value can help investors compare companies with different capital structures.
  9. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  10. Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center