Investment dictionary

EARNING POTENTIAL

Earning Potential: translation

The possible upside of the earnings that could be generated for each share outstanding of a particular stock. Earning potential reflects the largest possible profit that a corporation can make. It is often passed on to investors in the form of dividends. Greater earning potential drives up the price of a stock.

Although earning potential can cause a stock's price to rise, it will not necessarily translate into higher current dividends. A company that comes out with an innovative new product may have higher earning potential in the future, but the projected revenue may not translate into actual profit for some time.


  1. earning potential—эк. тр. потенциал заработка зарплатный потенциалu максимальная сумма денег которую человек может заработать при определенных условияхem The earning potential in construct...Англо-русский экономический словарь