| Webster's Online Dictionary |
| Expressions | Domain | Definition | |
| Earning power | Business | 1: The ability of a company to be more profitable and so pay higher dividends. Source: European Union. (references) | |
| 2: The demonstrated ability of a business to earn a profit, over time, while following good accounting practices. When a business shows a reasonable profit on invested capital after fully maintaining the business property, appropriately compensating its owner and employees, servicing its obligations, and fully recognizing its costs, the business may be said to have demonstrated earning power. Demonstrated earning power is the foremost test of the business risk in pressing upon an application for a loan. (references) | |||
Source: compiled by the editor from various references; see credits. | Top | ||
