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Earnings

Total income minus total expenses; synonymous with profit.

Actually, the terminology is usually more precise than this. "Net income" is used for after-tax profit before paying dividends; this is the number that's carried to the top of the cash flow statement. What's left over after paying dividends is called "earnings available to common shareholders"; this is the number used to calculate earnings per share and the P/E ratio.

All of these numbers are shown on the income statement.


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