What is Core Earnings?
The revenue derived from a company’s main or principal business less all associated expenses. Read more for examples and further explanation including related video clips and also comments
Example explains Core Earnings
Compared to net income, core earnings remove all secondary activities performed by a company so that investors will be not be as easily fooled by activities unrelated to the main business.
For example, a car manufacturer’s main business is producing vehicles. All revenue and expenses associated with the production of cars would be included in the core earnings. Financing schemes, development of non automobile parts or engines, maintenance of pension funds, and real estate interests would be omitted from the core earnings figure.
