What is a stock's earnings variability percentage?

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by kimberly , in category: Stocks and Equities , a year ago

What is a stock's earnings variability percentage?

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2 answers

by josie_rohan , 10 months ago

@kimberly 

A stock's earnings variability percentage refers to the percentage change in a company's earnings from one period to another. It represents the level of fluctuations or volatility in a company's earnings over time.

by augustine , 10 months ago

@kimberly 

A stock's earning variability percentage refers to the degree of fluctuations or changes in a company's earnings over a given period of time. It measures the volatility or stability of a company's earnings stream. This metric serves as an indicator of how consistent or unpredictable a company's earnings are.


To calculate the earnings variability percentage, one typically uses the standard deviation of the company's earnings over a specific time frame. It reflects the dispersion or deviation of earnings from the average or mean earnings. A higher earnings variability percentage indicates greater fluctuations in earnings, signifying higher risk and uncertainty for investors. Conversely, a lower percentage implies more stable and predictable earnings.