statement of earnings noun [C]. âº ACCOUNTING, FINANCE an âofficial âdocument that is âpart of a company's âfinancial âresults and gives details of its âprofit or âloss for a particular âperiod: During the âboom âyears, âcompanies put out exaggerated âstatements of âearnings.
Lagging indicators report on data that comes from past activity. The difference between leading and lagging indicators is the latter can indicate whether the nationâs economy is actually growing or contracting. A few examples of leading indicators may be bond yields or housing starts. Bonds are typically safe investments with little inherent risk.
If you're deciding which index is better you should understand that there probably is no such thing as a good index or a bad index. Each index has its advantages and drawbacks, and is used in different situations. Generally, a loan tied to a lagging index (COFI, e.g.) is better when rates are rising. Leading index loans, like those tied to CMT, are best during periods of declining rates.