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Finance: What are normalized earnings? 5 Views
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Normalized earnings are, more or less, the average of what you typically earn. Picture a bell curve. Zoom in on the middle of it. There you go.
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Transcript
- 00:00
Finance allah shmoop what are normalized earnings All right this
- 00:07
is norm or it's supposed to be We just couldn't
- 00:10
get the licensing rights from him So this is our
- 00:12
public domain version of norm from cheers Sorry And this's
- 00:17
normal that's a bell curve Yeah you're in the ebola
Full Transcript
- 00:21
abatement business Each year the government spends a few bucks
- 00:25
on you Just keep you alive Is a business in
- 00:28
case Well you know a few hundred million peoples faces
- 00:31
start melting off like you know that scene in indiana
- 00:34
jones you know the good ones so your earnings are
- 00:38
usually here and here and here and here a buck
- 00:41
a buck twelve twenty three twenty four years I'm like
- 00:43
that But then one year after miss malaria's high school
- 00:46
biology class takes a field trip to study monkeys bats
- 00:50
and beetle crap in caves in central ghana Well your
- 00:54
business picks up So this year when the gove is
- 00:57
having to spend a fortune on ebola abatement you were
- 01:00
nine dollars and forty two cents a share And since
- 01:04
world awareness has suddenly shot up the most popular yahoo
- 01:07
search term index that thing well next year you'll still
- 01:11
learn five seventeen to share even though most the ebola
- 01:14
is pretty much gone now But then things quiet down
- 01:16
in life goes back to normal where your earnings are
- 01:21
you know normal and you could plot some kind of
- 01:23
line through them And if someone asked you what normalized
- 01:27
earnings are in your little ebola abatement company well you
- 01:30
could say that your normalized earnings are in about a
- 01:34
buck twenty Well fortunately making out with the nigerian fruit
- 01:37
bat is not normal so you probably don't have to 00:01:40.539 --> [endTime] worry about contracting ebola Ooh
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