earning power

earning power definition - business

earning power

  1. Earnings that an asset could produce under optimal conditions. For example, AT&T may currently be earning $2.50 per share, but under optimal conditions each share could have earnings of $3.75.
  2. The expected yield on a security.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.