operating earnings

Business income calculated in violation of generally accepted accounting principles by including income items and excluding various business expenses.

• Many companies use operating earnings to favorably skew their price-earnings (P/E) ratios. Because the rationales for the underlying calculations vary from company to company, and from period to period within a company, operating earnings are almost always artificially inflated and unreliable. The term operating earnings is meaningless under generally accepted accounting principles.

— Also termed pro forma earnings; economic earnings; core earnings; ongoing earnings; earnings excluding special items. See PRICE-EARNINGS RATIOO.

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词条贡献者

法律翻译Barbara，毕业于英国一流的高级翻译学院，专注翻译各类与艺术诉讼有关的法律文件。