Earnings per share are the net earnings of the company earned on one share. It is a widely used metric even mentioned in the audited financials.
Definition 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
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.
As with other financial measures, EPS can vary with differing accounting techniques; therefore, reported EPS may give a very misleading signal as to how the firm is really doing. Also called income per share, net income per share. See also basic earnings per share, diluted earnings per share...
It’s important to note that how a company reports expenses and earnings can manipulate the reliability of the EPS, so identifying accounting changes can help determine EPS accuracy. Comparing earnings per share ratios Comparing EPS ratios can be a helpful indicator when investing in stocks. When ...
Something else to consider about EPS: Some management teams will be aggressive with their accounting policies. After all, a large part of their compensation will be based on the performance of the stock. But this could mean that the EPS is not a good measure of the performance of the compan...
Google Share on Facebook earnings Dictionary Thesaurus Financial Encyclopedia Wikipedia Related to earnings:Earnings per share,Earnings Calendar in relation to an employment, any salary, wages, fee, gratuity or other profit or incidental benefit of any kind obtained by the employee if it is money or...
Definition of Earnings per Share The earnings per share ratio, or simply earnings per share, or EPS, is a corporation’s 1) net income (or earnings) after tax that is available to its common stockholders, divided by 2) the weighted average number of shares of common stock that are ...
See Also: Price Earnings Growth Ratio Analysis Price Earnings Ratio Analysis Gross Profit Margin Ratio Analysis Net Profit Margin Analysis Financial Ratios Earnings per Share (EPS) Definition The earnings per share or EPS is the amount of profit that acc
Definition, Formula, and Example Diluted EPS is a performance metric used to assess a company's earnings per share if all convertible securities were exercised. more If-Converted Method: Meaning, Example, FAQs Investors use the if-converted method to calculate the value of convertible ...