earnings ability

USAGE SUMMARY

The phrase "earnings ability" is correct and usable in written English.
It can be used when discussing someone's or a company's capacity to generate income or profit. Example: "The investor was particularly interested in the company's earnings ability before making a decision."

✓ Grammatically correct

News & Media

Science

Academia

Human-verified examples from authoritative sources

Exact Expressions

9 human-written examples

The assumed ideal would be to tax earnings ability.

Journal of Public Economics

Time investment in human capital, or ''training," increases the wage and can interact with an agent's intrinsic, exogenous, and stochastic earnings ability.

Harvard University

"The question is, are these valuations in fact commensurate with the earnings ability of the company?" The debt crisis in Greece continues to cloud the market.

The New York Times

Babolat is now as recognisable a tennis brand as Wilson and Head, which have been in the racket-making business for much longer.Endorsement potential also has dramatic implications for an athlete's own earnings ability.

The Economist

This will limit its earnings ability until 2000, but analysts then expect the company to be profitable.

Forbes

It's also important to remember that airlines with poor reputations for customer service tend to have angry and disaffected employees who, over time, undermine the carrier's revenue and profit earnings ability.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

51 human-written examples

The group I looked at was non-elderly household heads and spouses whose earnings abilities – that is, the amount that they earn when they are working full time – are in the middle of the distribution, earning roughly $800 per week when the work is full time.

The New York Times

Annual earnings and ability to finish a race without disqualification are also two different traits, whereas the abilities of a horse to race under harness and under saddle are genetically closely related.

Genetics, Selection, Evolution

Large earnings and ability differences exist across majors.

Duke University

However, the authors were skeptical about these instruments, pointing out that family background may exert direct effects on earnings, and ability may show intergenerational persistence (Hanushek et al. 2015, p. 119).

Large-scale Assessments in Education

For this exercise, in order to avoid one-hit wonders, we limited our universe to those individuals Zacks cited as the top-five analysts in their industry groups for their three-year stock-picking and earnings forecasting ability.

Forbes

Expert writing Tips

Best practice

When discussing a company's financial outlook, use "earnings ability" to specifically highlight its capacity to generate profits consistently.

Common error

Avoid using "earnings ability" to refer to a company's current earnings figures. "Earnings ability" describes the potential for future income generation, while current earnings reflect past performance.

Linguistic Context

The phrase "earnings ability" functions primarily as a noun phrase, often used as the subject or object of a sentence. Ludwig AI confirms that the phrase is correct and suitable for use in written English. Examples show it describing potential or capacity to generate income.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Science

20%

Academia

20%

Less common in

Formal & Business

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "earnings ability" is a noun phrase that refers to the capacity to generate income or profit. Ludwig AI confirms its correctness and suitability. It's commonly used in news, academic, and scientific contexts. While not as common as "current earnings", understanding the difference is crucial: the former looks to the future, while the latter reflects past performance. Alternative phrases include "profitability" and "income potential". To avoid confusion, remember that "earnings ability" describes potential, not past results.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

earning power

Implies the strength or force in generating earnings.

profit-making capability

Stresses the inherent capability to make profits.

income potential

Highlights the possible future income that can be generated.

revenue-generating capacity

Emphasizes the ability to produce revenue.

profitability

Focuses on the state or degree of generating profit, rather than the inherent capacity.

wealth-generating capacity

Focuses on the broader aspect of creating wealth, not just income.

financial performance

Refers to the overall financial achievements, including earnings.

return on investment potential

Highlights the possible returns from invested capital.

market capitalization

Emphasizes the company's ability to generate profits in light of current market conditions.

solvency

Focuses on the ability to meet long-term financial obligations, indirectly related to earnings.

FAQs

How can I use "earnings ability" in a sentence?

You can use "earnings ability" to describe the potential of a company or individual to generate income, as in "The analyst assessed the company's "earnings ability" before recommending the stock".

What's a good alternative to "earnings ability"?

Depending on the context, you can use alternatives such as "profitability", "income potential", or "earning power".

Is "earnings ability" the same as "current earnings"?

No, "earnings ability" refers to the potential to generate income in the future, while "current earnings" refers to the actual income generated in a specific past period. They are related, but distinct concepts.

How does "earnings ability" affect a company's valuation?

A company's "earnings ability" is a critical factor in its valuation, as it reflects the company's capacity to generate future cash flows, which directly impacts its stock price and overall market value.