Financial Glossary what is net-earnings

Net Earnings

Net earnings is one of the most important measures of a companys performance. It is the companys profit once all the costs of business and other charges, including debt servicing and taxes, have been paid. Sometimes called net income or the bottom line. When divided by the number of shares in issue to give earnings per share, it is then used to calculate the popular price/earnings, or P/E, ratio for quoted companies.
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