Learn about what Earnings Per Share (EPS) is in accounting with a simple example. You can also learn other important accounting terms from Zoho Books' accounting dictionary.
Earnings per share (EPS) A company's profit divided by its number of common outstanding shares. If a company earning $2 million in one year had 2 million common shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the company often uses a weighted average of...
Define Earnings per share. Earnings per share synonyms, Earnings per share pronunciation, Earnings per share translation, English dictionary definition of Earnings per share. abbreviation for earnings per share Collins English Dictionary – Complete and
This financial statistic is the net income of a corporation after income tax (less any preferred dividends) divided by the weighted average number of shares of common stock outstanding during the same period of time. Related Q&A What is the earnings per share (EPS) ratio?
EPS meaning Earningsper share (EPS) measures how much money a company earns from each of its shares of stock and is used by investors to assess the company’s profitability. EPS is calculated by dividing the net profit by the number of outstanding shares. ...
Understanding Primary Earnings Per Share (EPS) Definition: A Key Metric in Finance Finance is a vast field, with numerous metrics and indicators used to evaluate the performance of companies. One such metric that holds great importance for investors is Primary Earnings Per Share (EPS). But what...
3. Cash Earnings per share This is a measure of financial performance formulated by a company on per share basis. Cash EPS is different from basic EPS because it concentrates on net income of the company on per share basis. It is more important than other EPS values because it is said to...
What is the formula for earnings per share? Earnings per share (EPS) is calculated as the total Net Income divided by the total number of outstanding shares of the company. The higher the EPS, the more profitable the company is.What is Earnings Per Share? Earnings per share (EPS) is the...
EPS calculated with the number of existing equity shareholders will present earnings per share for the shareholders existing at the point of the financial year closing. On the other hand, the weighted average of equity shares will give a true picture for analysis of the company. There is a thi...
Basic earnings per share (EPS) tells investors how much of a firm's net income was allotted to each share of common stock.