Earnings Growth
Earnings growth is the rate at which a company's earnings increase over time, commonly measured by changes in earnings per share (EPS) or net income. Analysts often compare year-over-year or multi-year growth rates, such as the compound annual growth rate (CAGR), to assess trend and potential impact on profitability.
Example: Example: A company reports net income of $100 million in year 1 and $120 million in year 2, representing 20% earnings growth year over year.
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