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Earnings are associated with a company's bottom-line results. The bottom line shows how much a company has earned after subtracting all of its expenses on a generally accepted accounting basis (GAPP). This measure can be referred to as net profit, net earnings, or net income. 'Net' typically just means that expenses are subtracted, but since earnings represent bottom-line results after all expenses are removed, people tend to omit saying 'net earnings' unless otherwise specified. Positive net earnings indicate profitability, while negative figures signify losses. Profitability refers to the ability of a business to generate earnings or profits relative to its costs and expenses. A profitable company typically earns more revenue than it incurs in expenses. If a company is operating with negative net earnings or a net loss, it is not profitable. Cash flow measures the movement of money within a business, and free cash flow is the surplus cash after subtracting capital expenditures from operating cash flow. There are multiple charges that impact and lower earnings but do not change cash at all. Although positive free cash flow is favorable for various financial activities, it does not guarantee profitability, as a company can have positive cash flow while incurring net losses. To assess profitability, ratios such as net profit margin, return on equity, and/or return on assets can be used.