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Earning Power 
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)
       

The ability of a business consistently to employ its capital profitably over a period of time.  When profits show a reasonable return on invested capital and are sufficient also to provide for a high standard of maintenance of properties and necessary plant extensions, the concern is said to have a demonstrated earning power.  Demonstrated earning power is the best test of the BUSINESS RISK in passing upon an application for a loan.


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