Earnings before taxes (EBT)
A financial measure defined as revenues less cost of goods sold and selling,
general, and administrative expenses. In other words, operating and non-
operating profit before the deduction of income taxes.
Earnings per share (EPS)
E.P.S., as it is called, is a company's profit divided by its number of outstanding
shares. If a company earned $2 million in one year had 2 million shares of stock
outstanding, its EPS would be $1 per share. In calculating E.P.S., the company
often uses a weighted average of shares outstanding over the reporting term.
Earnings retention ratio
Plowback rate.
Earnings surprises
Positive or negative differences from the consensus forecast of earnings by
institutions such as First Call or I.B.E.S. Negative earnings surprises generally
have a greater adverse affect on stock prices than the reciprocal positive
earnings surprise on stock prices.
Earnings yield
The ratio of earnings per share, after allowing for tax and interest payments on
fixed interest debt, to the current share price. The inverse of the price/earnings
ratio. It is the total twelve months earnings divided by number of outstanding
shares, divided by the recent price, multiplied by 100. The end result is shown in
percentage. We often look at earning yields because it avoids the problem of
zero earnings in the denominator of the price/earning ratio.
EBIT
See: Earnings Before Interest and Taxes
EBITD
See: Earnings Before Interest, Taxes and Depreciation
EBITDA
See: Earnings Before Interest, Taxes, Depreciation and Amortization
