Earnings and Percentage point: Difference between pages

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1. ''Shareholder profits.''
A percentage point is 1%, or 100 basis points.  


In relation to a UK firm, its profits available for distribution to ordinary shareholders. 
An increase of 3%, say from 2% to 5%, is an increase of three percentage points, or 300 basis points.
 
Also known as Net Profit.
 
 
2. ''Profits.''
 
In relation to firms more generally, their profits.
 
 
3. ''Income.''
 
Any stream of income or profits, for example interest earnings.
 
 
4. ''Earned income.''
 
In relation to individuals, their earned income, for example salary. 
 
Distinguished from their investment income and their capital gains.  This distinction is important in relation to individual taxation, and in relation to pensions.




== See also ==
== See also ==
* [[Diluted earnings per share]]
* [[Basis point]]
* [[Distribution]]
* [[Dividend payout ratio]]
* [[Earnings cap]]
* [[Earnings multiples]]
* [[Earnings per share]]
* [[EBIT]]
* [[EBITDA]]
* [[Interest]]
* [[Lower earnings limit]]
* [[Multiples valuation]]
* [[Net profit]]
* [[Owner earnings]]
* [[Profit after tax]
* [[Price to earnings ratio]]
* [[Shareholders cash flow]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 16:17, 9 August 2016

A percentage point is 1%, or 100 basis points.

An increase of 3%, say from 2% to 5%, is an increase of three percentage points, or 300 basis points.


See also