Earnings refer to the amount of money a person or business makes from their work or investments over a specific period. For individuals, earnings typically come from salaries, wages, or bonuses received for their labor. For businesses, earnings can be generated from sales of products or services, minus any costs associated with producing them.
In the context of finance, earnings are often reported in financial statements, such as the income statement. Investors closely monitor a company's earnings to assess its profitability and overall financial health. Higher earnings can lead to increased stock prices and dividends for shareholders, making them a key focus in the world of investing.