Annual Earnings Change

The change in earnings for a company, between the most recent fiscal year and the preceding one is called the annual earnings change.

Points to remember:

  • This change is due to fluctuations in the company’s outcome.

Example : Let’s assume that your company initially earned a total revenue of Rs. 50,000 during the previous year and earned a total revenue of Rs. 70,000 this year. Then your Annual Earnings Change would be calculated as follows :

Annual Earnings Change = Rs. 70,000-50,000= Rs 20,000