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operating earnings

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Financial Dictionary

Operating Earnings

Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue.

Investopedia Commentary

Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before interest and taxes). Analysts typically use operating earnings to judge the quality of a company's core business and forward prospects since it shows the relationship between sales, volume and costs.

Related Links

EBITDA: The Good, The Bad, And The Ugly
Everything You Need To Know About Earnings
Introduction to Fundamental Analysis
Advanced Financial Statement Analysis

See also: Cost of Goods Sold - COGS, Earnings, EBITD, EBITDA, EBITDAX, Expenses, Income Tax, Net Income, Revenue, Taxes

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