Earnings are the final after-tax net income of the company. It is a highly sought after figure that both investors and economists will be wanting to see to enable them to understand the profitability of the company. Earnings are typically calculated every quarter and will indicate whether the business is outperforming against its competitors by raking in more or if the opposite is true.
For example…
Biscuits R Us started their venture into the already crowded biscuit business back in 2014. Their earnings in the first financial year, was solid at 2 million dollars. However, each year since then, they have lost ground, bringing in only about $800,000 in the last financial year. Considering the earnings over the past few years and the lack of shareholder support, Biscuits R Us decided to close their business at the end of the year.
