EBITDARM
What is 'EBITDARM' A financial performance measure that stands for earnings before interest, taxes, depreciation, amortization, rent and management fees. EBITDARM is used in comparison to more common measures such as EBITDA when a company's rent and management fees represent a larger-than-normal percentage of operating costs. Explaining 'EBITDARM' EBITDARM is not...
Earnings Allowance
What is 'Earnings Allowance' Calculation on the net funds available in a checking account and the credit amount can be used to offset all or a portion of monthly service charges. The rate for the earnings allowance is set at the bank's discretion. Explaining 'Earnings Allowance' The earnings allowance, or...
Early Withdrawal
What is 'Early Withdrawal' The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account, such as an IRA or 401(k) before a prescribed time. Early withdrawal could be anything earlier than the account owner's attainment of a prescribed minimum age requirement,...
Earnings Before Interest & Tax (EBIT)
What is 'Earnings Before Interest & Tax - EBIT' An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "profit before interest and taxes (PBIT)." Explaining 'Earnings Before Interest & Tax - EBIT' EBIT measures the profit a...
Earnings Power
What is 'Earnings Power' Earnings power is a business' ability to generate profit from conducting its operations. It is used to analyze stocks to assess whether the underlying company is worthy of investment. A company’s earnings power is a reflection of the ability to generate income or profits over time, assuming all current operational conditions remain constant....
eCash
DefinitionEcash was conceived by David Chaum as an anonymous cryptographic electronic money or electronic cash system in 1983. It was realized through his corporation Digicash and used as micropayment system at one US bank from 1995 to 1998. eCash What is 'eCash' An Internet-based system that allows funds to be transferred anonymously. Similar to credit cards, eCash...
Earnings Yield
DefinitionEarnings yield is the quotient of earnings per share divided by the share price. It is the reciprocal of the P/E ratio. Earnings Yield What is 'Earnings Yield' Earnings yield are the earnings per share for the most recent 12-month period divided by the current market price per share. The earnings yield (which is the inverse of...
Economic Growth And Tax Relief Reconciliation Act of 2001 (EGTRRA)
What is 'Economic Growth And Tax Relief Reconciliation Act of 2001 - EGTRRA' A U.S. tax law, effective for tax years beginning 2002, that made some of the most important changes to retirement plans, including increased contributions and deductibility limits for IRA and employer-sponsored plans, and expanded the portability rules for retirement plans in general. EGTRRA also...
Earnings Surprise
DefinitionAn earnings surprise, or unexpected earnings, in accounting, is the difference between the reported earnings and the expected earnings of an entity. Measures of a firm's expected earnings, in turn, include analysts' forecasts of the firm's profit and mathematical models of expected earnings based on the earnings of previous accounting periods. Earnings Surprise What is an 'Earnings Surprise'...
Economic Indicator
What is an 'Economic Indicator' An economic indicator is a piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities or to judge the overall health of an economy. Economic indicators can be anything the investor chooses, but specific pieces of data released by government and non-profit...