What is Company Earnings

Earnings are a company's net profit. It is the surplus left with the company after it has cleared all its expenses, i.e. Money paid to employees, utility bills, costs of production and other operating expenses The manner in which a company makes its earnings, is defined by the very nature of its business.

Two sources of company earnings are:

Ø Income from sales of goods or services
Ø Income from investment.

Investments generate income for businesses by way of either interest on loans, dividends from other businesses, or gains on the sale of investment property.Thus, company earnings are the sum of income from sales or investment left after the company has met its obligations.