Two-Step Earnings

Posted in Finance, Accounting and Economics Terms, Total Reads: 241
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Definition: Two-Step Earnings

Two step earnings is a term used as a slang reference to the 2 companies whose earnings tend to move in the tandem. The earnings of the companies tend to escalate in a slow slow or a quick quick manner. This slang term is a reference to the country style dance which is also called as the two step dance because while performing the two step dance, the two individuals who are dancing move in tandem with a slow slow & then with a quick quick speed.


Two Step Earnings is a term describing a situation in which the two companies have the earnings which tend to mirror the each other. Companies with the two step earnings generally grow slowly in tandem & then quickly in tandem.


The cycle then repeats itself again & again. The earnings of the 2 different companies move the side by side. When the earnings of a company increases slowly, the earnings of the another company also increase slowly but when there is high growth in the income of the first company, suddenly there is also similar exponential growth in the incomes of the second company. Then the earnings of those 2 companies are referred to as the two step earnings.

 

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