Quarterly Earnings

Quarterly Earnings

A company's total revenue for a quarter less its quarterly operating expenses, interest paid, depreciation, and taxes. For example, a widget manufacturer may earn $1,000,000 in total revenue in Q1 2010. The widgets cost $200,000 to make, and the manufacturer's administrative and payroll expenses total $250,000. He/she also must subtract $50,000 in depreciation on widget manufacturing equipment and pay $200,000 in taxes. The manufacturer's quarterly earnings are stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $300,000. See also: EBIT.