Earnings are the net profits generated by a company’s operations. The amount on which company tax is owed is sometimes referred to as earnings. EBIT (earnings before interest and taxes) and EBITDA (earnings before interest and taxes) are two more specialized terminology used to analyze particular areas of company operations (earnings before interest, taxes, depreciation, and amortization).

Earnings are referred to by a variety of names, including income and profit. These terminologies, in turn, have a number of meanings that vary based on the context and the authors’ goals. For example, the IRS uses the term profit to indicate profits, although the profit reported by a firm is the amount left after taxes have been deducted.

Intellectual property is used to earn non-routine revenues. These are frequently several orders of magnitude higher than regular profits. Non-routine earnings are required to justify the high levels of investment required in high-tech enterprises.

In order to detect suspected earnings manipulations, certain statistical models (e.g., based on Benford’s law or Beneish M-score) are utilized (fraud).

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