Earnings after everything (EAE), a term coined by Prof. Malik, is an alternative to the various forms of EBIT (Earnings before interest and taxes). Whilst EBIT, developed in the heyday of the shareholder-value approach, turned out to be a number that could easily be manipulated, EAE – together with the other central performance controls – serves the purpose of management. Earnings After Everything (EAE) clearly shows that one can only speak of „real“ economic success when all investments have been made and all reserves have been put away to ensure the viability of an institution.

2023-10-18T11:10:55+00:00October 18th, 2023|

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