Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Earnings

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Category: Accounting and Finance

Definition:

Generally refers to the profits a company generates over a specific period, often reported on a quarterly or annual basis. A company’s earnings are its after-tax net income and are sometimes referred to as the company’s bottom line or its profits.
Earnings are widely regarded as the most important and most closely studied number in a company’s financial statements. They show a company’s real profitability as compared to analyst estimates, its historical performance, and the earnings of its competitors and industry peers. There are different types of earnings such as Net Earnings (Net Income or Net Profit), Earnings Before Interest and Taxes (EBIT), Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), and Earnings Per Share (EPS).