Download Basic Earnings Per Share Example Background. 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. The company issues preferred dividends.
In other words, it expresses the earning capacity of the company, if divided by the value of. Diluted earnings per share adjust the basic eps figure by including all potential dilution that, if triggered at present prices and conditions, would result in the reported earnings per share being lower than they otherwise would have been. Here are just two examples of complicating factors that.
Learn about its factors, importance and formula.
When comparing one company to others, a higher eps is considered the mark. Learn vocabulary, terms and more with flashcards, games and other study tools. Earnings per share (eps) is a commonly used phrase in the financial world. Earnings per share decreases when company issues new shares which affect the earnings per share negatively for example in case of rights and bonus.