Glossary
Adjusted Earnings
A company's profit after removing one-off effects, private expenses and a reasonable owner's salary. Only the adjusted earnings show what the business can earn under new management.
Related termImputed Owner's SalaryAn assumed salary for the work of the owner, which does not appear in the costs of sole proprietorships and partnerships.Next Read moreWhat is a small company worth? Valuation explained simplyNext
FAQ
Frequently asked questions
What are adjusted earnings?
A company's profit after removing one-off effects, private expenses and a reasonable owner's salary.
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