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> They have, as they have shown, complete ability to dictate the size of their earnings based on how much they want to spend on new research and infrastructure.
by spott 9y ago
> They have, as they have shown, complete ability to dictate the size of their earnings based on how much they want to spend on new research and infrastructure.
I think you are thinking of profit, not earnings. Earnings is revenue - cost of production, which has nothing to do with R&D or infrastructure development.
- mrkstu 9y agoR&D and infrastructure are still expenses and lower your earnings- it is still cash going out that you can't return to shareholders.
- sib 9y agoEarnings == profit. You may be thinking of gross margin. "Earnings are the amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year."
- spott 9y ago>https://money.stackexchange.com/questions/22795/is-there-a-difference-between-a-companys-profit-vs-earnings https://money.stackexchange.com/questions/22795/is-there-a-d... This has a different answer than Investopedia. The difference is subtle, but it is there.