Warren Buffett's preferred measure of economic earnings: reported earnings plus non-cash charges (D&A) minus the capital expenditure required to maintain competitive position. APPROXIMATE here — true owner earnings need MAINTENANCE capex, which EDGAR does not separate from total capex, so this line uses total capex and will understate owner earnings for companies with significant growth capex.
Formula
Net Income + D&A − Capital Expenditures (total)
Related terms
Metrics on this page are computed by Moatkeep from reported filings and market data and are estimates: they depend on modelling choices (e.g. period alignment, share counts, currency) and on the underlying data being correct. Definitions are in the glossary. Figures are not investment advice — see the full disclaimer.