NET EARNINGS Meaning and
Definition
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Net earnings, also commonly referred to as net income or profit, is a financial term that represents the amount of revenue or income remaining after deducting all applicable expenses, taxes, and other deductions. It is a crucial measure used to assess the profitability and financial health of a company or an individual.
Net earnings can be calculated by subtracting all costs and expenses from the total revenue generated during a specific period. These costs and expenses include: cost of goods sold, operating expenses, interest payments, taxes, depreciation, amortization, and any other deductions.
Net earnings provide a valuable insight into the profitability of a business as it reflects the amount of money left over after all expenses have been paid. A higher net earnings figure is typically indicative of a successful, well-managed business, whereas a low or negative net earnings suggests that a business is not generating enough revenue to cover its expenses.
Net earnings are commonly used in financial analysis and reporting to evaluate a company's performance and to make informed investment decisions. It is also used by individuals to assess their personal financial situation, such as when applying for loans or mortgages.
Overall, net earnings serve as an essential measure of financial success and provide a clear picture of the profitability and sustainability of a business or individual's financial ventures.
Common Misspellings for NET EARNINGS
- bet earnings
- met earnings
- jet earnings
- het earnings
- nwt earnings
- nst earnings
- ndt earnings
- nrt earnings
- n4t earnings
- n3t earnings
- ner earnings
- nef earnings
- neg earnings
- ney earnings
- ne6 earnings
- ne5 earnings
- net warnings
- net sarnings
- net darnings
- net rarnings
Etymology of NET EARNINGS
The word "net" comes from the Old English word "nett", which means "clean, pure, neat, or clear". It evolved from the Proto-Germanic word "natjan", meaning "to clean", and is closely related to the Old High German word "naz", meaning "clean". Over time, "net" also came to refer to the remaining amount after all deductions or expenses have been subtracted, thus referring to a final or pure amount.
The word "earnings" has origins in the Old English word "gearnian", meaning "to earn, merit, or deserve". It is derived from the Proto-Germanic word "gernan", which means "to grasp or seize". "Earnings" refers to the income or profits gained from one's employment, business, or investments.
