Earnings in a corporation, as defined in INVESTOPEDIA, are also known as corporate profits, after-tax net, income, the bottom line, or company's profits Are used to compare performance with its competitors, or industries peers.
The earnings can be used to pay dividends to the shareholders, the owners of the company. They can be reinvested, used in research, new ventures, additional equipment, to purchase-out competitors, allow for expansions, investments into new areas of business, held for future use, and so on.
