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core earnings

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Financial Dictionary

Core Earnings

The revenue derived from a company's main or principal business less all associated expenses.

Investopedia Commentary

Compared to net income, core earnings remove all secondary activities performed by a company so that investors will be not be as easily fooled by activities unrelated to the main business.

For example, a car manufacturer's main business is producing vehicles. All revenue and expenses associated with the production of cars would be included in the core earnings. Financing schemes, development of non automobile parts or engines, maintenance of pension funds, and real estate interests would be omitted from the core earnings figure.

Related Links

Core Earnings Measure Up
Everything You Need To Know About Earnings
Types Of EPS
How To Evaluate The Quality Of EPS

See also: Bottom Line, Earnings, Expense, Net Income, Revenue

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