An earnings report is a financial statement that a company provides to its shareholders and the general public.
The earnings report contains information on the company’s financial status for a certain period of time, usually on a quarterly or annual basis. As the name implies, this report showcases the earnings of the company. More than the earnings, or profits, of the company, this financial report also details the expenses of the company.
Earnings reports are generated on a regular basis. They are created with the shareholders in mind. In this sense, earnings reports create accountability. The shareholders must be satisfied that the company is being run in such a way that they are getting positive results. These results may be measured by looking at the net profit of the company as well as the expenses.
The figures may also be seen as a reflection of the management style of the company. More so, earnings reports compiled through the years may serve as a thermometer of the financial health of the company.
More than the shareholders, however, the general public may have access to the earnings report of a company. In fact, earnings reports are generally released to the press. It is not uncommon to see earnings reports published in newspapers and other media, including the Internet. For individuals or entities who may not be shareholders of a certain company, the earnings report can still be a significant tool. This can be used to determine whether or not a company is worth investing money in, among other things.
The term earnings report is synonymous with terms such as profit and loss statement, income statement, and operating statement.
