49+ Net Earnings Per Share Images. Earnings per share (eps) is an important financial metric which is calculated by dividing the total earnings or the total net income with the total number of outstanding shares and is used by investors to measure the company's performance and profitability before investing, the higher the eps the more. What is the earnings per share (eps) formula?
Solved: Murray Company Reports Net Income Of $693,000 For ... | Chegg.com from d2vlcm61l7u1fs.cloudfront.net The earnings per share value is calculated as the net income (also known as profits or earnings) divided by the available shares. Year ended june 30, 2013. Basic earnings per share (eps) is computed based on the weighted average number of shares of common stock outstanding during the period.
The calculation is used to determine company strength relative to other companies as well as to track performance.
In other words, eps assesses the ability of a company to generate net profits for the common. Earnings per share represents a portion of a company's profit that is allocated to one share of stock. Earnings per share — eps for short — is the portion of a company's profits that are allocated to each outstanding stock share. Each share gives an investor a small piece of ownership in a company the eps calculation is fairly simple—just take a company's net earnings and divide them by the firm's outstanding shares.
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