Basic Earning Power Calculator
Basic Earning Power Calculator
Component | Description |
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Operating Income | The income generated from a company’s normal business operations. |
Total Assets | The total value of everything a company owns. |
Basic Earning Power (BEP) | A measure of a company’s ability to generate earnings from its assets. |
Formula | Basic Earning Power = Operating Income / Total Assets |
Purpose | Used to compare the earning power of companies regardless of their debt and tax situations. |