|
|
Earnings |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
EarningsThe total amount earned, usually by a worker as wages, or by a firm as profits.EarningsNet income for the company during a period.EarningsThe annual profits of a company after deduction of tax, dividends to preference shareholders and bondholders. Earnings are usually expressed on a per-share basis (e.g. 7p), and the earnings per share (EPS) figure is calculated by dividing total earnings by the average number of shares in issue for the relevant accounting period.E.g. earnings of £2m, with 10m shares in issue would give an EPS of 20pYou may see earnings used in several ways:Reported earnings: the figure in the company's accountsUnderlying earnings: the figure derived from reported earnings by excluding any one-off items (e.g. profit from the sale of land which is not part of the company's normal business)Diluted earnings: earnings after adjustment has been made for shares that may be issued in the future if holders of options, warrants and convertibles choose to exercise their rights.Similar MatchesTaxable earningsTaxable earningsThe amount of an individual's annual income on which tax is payable defined as:Taxable earnings = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable Income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate) Earnings price ratioEarnings price ratioSee: Earnings yield Earnings capEarnings capA term which relates to a person's final salary in an occupational pension scheme taken out on or after 1st June 1989 (or 14th March 1989 if the scheme was new at that time) and is the upper limit of earnings allowable under the scheme.The upper limit of net relevant earnings qualifying for tax relief in a personal pension plan, which in turn limits contributions. State Earnings Related Pension SchemeState Earnings Related Pension SchemeA government scheme introduced in April 1978 which enables employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.Employees make payments to SERPS by way of Class 1 National Insurance (NI) contributions. They can 'contract out' of SERPS and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.SERPS was replaced in April 2002 with the 'State Second Pension' which is designed to give more to the lower paid and middle earners, carers and the long-term disabled with broken work records. Whereas with SERPS, the more you earn, the higher your pension, S2P operate a flat rate which means that high earners will be better off opting for private pension schemes. Earnings before interest after taxes (EBIAT)Earnings before interest after taxes (EBIAT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest plus cash income taxes. Equivalent to EBIT minus cash taxes. Further SuggestionsEarnings retention ratioPrimary earnings per (common) share net relevant earnings normalised earnings Quality of earnings Earnings yield Earnings before interest, taxes, depreciation, and amortization (EBITDA) price earnings growth factor Earnings momentum earnings per share Normalized earnings lower earnings limit Accounting earnings price earnings ratio (P/E ratio) Earnings before taxes (EBT) retained earnings Earnings before interest, taxes, and depreciation (EBITD) earnings yield Fully diluted earnings per shares band earnings adjusted earnings Earnings response coefficient Earnings before interest and, taxes (EBIT) earnings factor Retained earnings |
|
|
|