Earnings
Profit; bottom-line income after expenses.
Formula
Earnings = Revenue − Total Costs
Real World
Apple reported net earnings of $97bn in 2023; analysts scrutinised whether these were sustainable or boosted by one-off gains from asset sales, illustrating why earnings quality matters.
Exam Focus
If asked to 'evaluate' earnings, question whether figures are recurring or include one-time items that inflate the result.
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