Quality Of Earnings

The amount of earnings attributable to higher sales or lower costs rather than artificial profits created by accounting anomalies such as inflation of inventory.

Quality of earnings is considered poor during times of high inflation. Also, earnings that are calculated conservatively are considered to have higher quality than those calculated by aggressive accounting policies.


Investment dictionary. . 2012.

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  • quality of earnings — Increased earnings due to increased sales and cost controls, as compared to artificial profits created by inflation of inventory or other asset prices. Bloomberg Financial Dictionary …   Financial and business terms

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  • Quality-of-Life Index — The Economist Intelligence Unit’s quality of life index is based on a unique methodology that links the results of subjective life satisfaction surveys to the objective determinants of quality of life across countries. The index was calculated in …   Wikipedia

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