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Earnings are a crucial metric for investors because they reflect the financial health of a company and its ability to generate profits. Positive earnings growth over time indicates that a company is increasing its profitability and creating value for shareholders. In contrast, negative earnings or declining profits can signal underlying problems and a lack of competitiveness in the market. Earnings are also used to calculate important ratios such as price-to-earnings (P/E) ratio, which is a measure of a company's valuation and compares its stock price to its earnings per share. Ultimately, investors want to see a company's earnings increase over time, as this suggests that the company is effectively managing its operations, has strong financial fundamentals, and is likely to provide a good return on investment.

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