Normalized Earnings
Barron's Finance & Investment Dictionary:
Top
Normalized Earnings
earnings, either in the past or the future, that are adjusted for cyclical ups and downs in the economy. Earnings are normalized by analysts by generating a moving average over several years including up and down cycles. Analysts refer to normalized earnings when explaining whether a company’s current profits are above or below its long-term trend.
| Normal Trading Unit, Normal Retirement | |
| North American Industrial Classification System (NAICS), North American Securities Administrators Association (NASAA) |
Related Videos:
Top
Normalized Earnings
Investopedia Financial Dictionary:
Top
Normalized Earnings
1. Earnings adjusted for cyclical ups and downs in the economy.
2. On the balance sheet, earnings adjusted to remove unusual or one-time influences.
Investopedia Says:
An example would be removing a land sale in which a large capital gain was realized.
Normalized earnings help show the true earnings from operations.
Related Links:
Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports. What Is A Cash Flow Statement?
Learn about the components of the statement of financial position and how they relate to each other. Reading The Balance Sheet
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
Read more
