Earning is synonymous with net income, or profit. Earnings are simply telling us what sums of funds are left over from companies revenues once cost of goods and expenses are subtracted. As an index trader, getting early and accurate earnings results and seeing their impact on the stock is a great way to get edge above other traders. Within the earning section we have three different ways of issuing earnings reports.
- Earnings Before Taxes (EBT) – Financial measure, revenue less cost of goods sold and selling, general, and administrative expenses
- Earnings Before Interest and Taxes (EBIT) – Like EBT, but operating and non- operating profit before the deduction of income taxes and interest
- Earnings Before Interest and Taxes before depreciation, and amortization (EBITDA) – Like EBT, but operating and non-operating profit before the deduction of interest and income taxes. Depreciation and amortization expenses and not included in the costs