In recent years, I've read earnings announcements from companies and I've come to doubt the transparency of even the veracity of what I've been reading. After digging into the financial statements, I've found what I consider some dubious earnings reporting. Financial analysts are increasingly concerned about earnings reporting and have reached certain conclusions.
* The measure of quality is the degree to which earnings are generated from internally developed initiatives, as opposed to external forces.
* If a company has increased earnings year over year from improved cost efficiencies or sales generated from a marketing campaign, that company has a high quality of earnings.
* If a company's earnings are attributed to outside sources such increasing commodity prices, this is seen as low quality of earnings.
* It has also come to mean the degree to which management's choices of accounting estimates can affect reported income.
* Some analysts question whether some firms engage in "earnings management."
yes
Yes, since this account (Retained Earnings) is a credit account and an uppropriate retained earnings account is simply a non-restricted account which is Retained Earnings !!! Even the restricted/ appropriate retained earnings are credited.
A new business has no retained earnings. Retained earnings are prior years earnings that have not been distributed to the shareholders... if it is a brand new business there is no possible way to have retained earnings at inception date.
Dividends, profit and earnings are related as if there is increase in earnings then there is possibly increase in profit as well as increase in dividend amount.
Diluted earnings per share Diluted earnings per share
The phrase you’re referring to is likely "earnings sustainability" or "recurring earnings." Analysts generally interpret it as the quality of earnings improves when there is a higher likelihood that those earnings will continue in the future. However, the exact definition can vary, leading to different interpretations among analysts regarding what constitutes high-quality earnings.
P/E Ratio
saving accounts earnings
rate of input and quality of output
The key question is "Is this real sustainable earnings?" (high quality) or is it earnings due to some accounting quirk or one-time event which would not be expected to continue in future periods? Is it even honest reporting or were the books adjusted to make management look good and achieve desired bonuses?
The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors
There are many things meant by 'premium quality'. Typically, something that is 'premium quality' is well made and is worth a great deal of money because of its state.
C- capital adequacy A- asset quality M- management quality E- earnings quality L- liquidity S- sensitive to market risk
a physical quality is how u look eg: your best physical quality is ur eyes!!
Late delivery and low quality affects the earning for a florist
Image Quality
There are many things meant by 'premium quality'. Typically, something that is 'premium quality' is well made and is worth a great deal of money because of its state.