Earnings and Earnings Growth
1. Earnings = sales x profit margin
2010 – $31.589 billion x 8.11% = $2.561 billion 2011 – $37.990 billion x 8.33% = $3.168 billion
ABB LTD’s earnings increased from $2.561 billion in 2010 to $3.168 billion in 2011 or by 23.7%.
2. Five-year historical look at earnings growth
2007 – $3.611 billion, 2008 – $3.118 billion, 15.81% decrease 2009 – $2.901 billion, 7.48% decrease 2010 – $2.561 billion, 13.27% decrease 2011 – $3.168 billion, 23.70%
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