Annual Earnings Change
An Annual Earnings Change refers to the difference in a company’s earnings between the current and previous fiscal year. The formula for calculating it is:Annual Earnings Change = Current Fiscal Year Earnings - Previous Fiscal Year EarningsFor example, if a Car manufacturing company earned Rs. 1000 crores in the current fiscal year and Rs. 900 crores in the previous fiscal year, the annual earnings change would be:Rs. 1000 crores - Rs. 900 crores = Rs. 100 crores.This shows the increase in earnings from one year to the next.
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