Earnings Meaning
Earnings Definition & Usage
Money earned in exchange for work, services, or investments.
Examples
- "His annual earnings exceeded $100,000 after bonuses and commissions."
- "The company's earnings have grown steadily over the last three years."
- "The workers' earnings were not enough to cover the rising cost of living."
- "She used her earnings to start a small business selling handmade jewelry."
- "Investors were pleased with the company's earnings, which beat analysts' expectations."
A company's net profits after expenses, taxes, and interest have been deducted.
Examples
- "The company's quarterly earnings report showed a significant increase in profit."
- "Despite higher sales, their earnings were impacted by rising operational costs."
- "Analysts predict that the company's earnings will double over the next five years."
- "Earnings per share (EPS) is a key metric for investors to assess the company's profitability."
- "Investors are focusing on the company's earnings growth to make their buying decisions."
Cultural Context
The concept of earnings plays a crucial role in personal finance, business, and economics. It is central to discussions on wealth, income distribution, and the profitability of businesses. In many cultures, the level of a person’s or company's earnings is a key indicator of economic success and stability.
The Rise of the Company
Story
The Rise of the Company
John had always dreamed of becoming an entrepreneur, but the road to success was anything but easy. He spent his early years working in various jobs, from waiter to software developer, always trying to increase his earnings. It wasn't until he had saved enough from his modest income that he could finally invest in a small tech startup with a friend. The startup began modestly, with only a few clients and limited resources. But after a year of hard work and countless late nights, their earnings started to grow. They focused on delivering high-quality service, and slowly, they began to land bigger contracts. By the time the company reached its third year, their earnings had tripled, and John found himself in a position he had never imagined. The small business he had invested in was now turning a significant profit. One day, John sat in his office, reviewing the company's earnings report. The numbers on the page showed a 50% increase in net earnings from the previous quarter. This was the kind of growth he'd hoped for, but it didn't come without challenges. The increased earnings meant higher taxes and greater operational costs. However, it also meant that they could invest more in expanding the business, hire new talent, and increase their market share. That evening, John reflected on his journey. It wasn't just about the financial success; it was about the work ethic that had driven him and his team. Their earnings were a direct reflection of their dedication and the value they provided to their clients. As the business continued to grow, the team worked tirelessly, always mindful of the balance between generating earnings and managing expenses. They knew that the path to sustained success was not just about increasing revenue, but also about ensuring that their earnings were reinvested wisely to fuel future growth.