Upper earnings level


 

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Upper earnings level

The earnings level of an employee above which no further Class 1 National Insurance contributions are payable.



Similar Matches

Adjusted earnings

Adjusted earnings

If a company's earnings figures are distorted either positively or negatively by exceptional one-off occurrences in the year, its directors can choose to clarify the performance by releasing adjusted earnings. In other words, earnings with the exceptional items stripped out which they believe are more representative of its underlying performance.


Retained earnings

Retained earnings

The proportion of a company's profits after tax which are not paid out as dividends but reinvested in the company.


Earnings before taxes (EBT)

Earnings before taxes (EBT)

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 income taxes.


Earnings

Earnings

The total amount earned, usually by a worker as wages, or by a firm as profits.


Earnings per share

Earnings per share

Earning per Share (EPS) = Earnings / Number of Shares in IssueEPS is a key ratio used in share valuations. It shows how much of the company's profits, after tax, each shareholder owns.Example: Goodco makes a post-tax profit of £1.2 million. There are 20 million shares in issue. EPS = £0.6What starts out as an easy calculation gets complicated because the rules on what constitute earnings are fuzzy, especially when it comes to 'extraordinary' items:When an industrial manufacturer sells a large parcel of land to a developer should that profit be treated the same as the profits from its mainstream activities?If its profits one year are wiped out by an uninsurable natural disaster at its plant, should that event be regarded as just a normal cost of doing business?Until recently companies had discretion about how they treated one-offs. They could call an unusual profit 'exceptional' and include it in their EPS, and call an unusual loss 'extraordinary' and exclude it from EPS. This made it very difficult for investors to gauge the true progress of the business.Various Financial Reporting Standards (FRS) have tried to regularise treatment of one-offs, but if anything have made analysis harder. Large companies now report EPS in different ways, and the challenge for investors is knowing what basis has been used. When newspapers report EPS they use 'adjusted' EPS (also known as 'headline earnings') which strips out all profits/losses attributable to non-core activities.


Further Suggestions

Earnings momentum
Earnings retention ratio
Quality of earnings
Normalized earnings
net relevant earnings
normalised earnings
earnings factor
Earnings before interest and, taxes (EBIT)
State Earnings Related Pension Scheme
Earnings before interest, taxes, and depreciation (EBITD)
price earnings ratio (P/E ratio)
lower earnings limit
Earnings yield
Earnings
Pretax earnings or profits
earnings yield
price earnings growth factor
band earnings
Accounting earnings
Earnings price ratio
Primary earnings per (common) share
Earnings before interest after taxes (EBIAT)
Earnings response coefficient
taxable earnings
earnings cap


 
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