40+ Earnings Per Share Meaning Background. A company's profits over a particular period divided by the number of its shares: Earning per share is the same as any profitability or market prospect ratio.
Significance of earnings per share earnings can cause stock prices to rise, and when they do, investors make money. The higher the number, the more potentially valuable each share of stock. Earnings per share (eps) is calculated by taking the net earnings of the company, then dividing by the number of shares of the company.
Hessington oil's earnings per share and market cap growth over the last 11.2 years.
The numerator is the net income available for common stockholders (i.e., net income less preferred dividend) and the denominator is the average number of shares of common stock outstanding during the year. Earnings per share ratio (eps ratio) is computed by the following formula: The calculation is used to determine company strength relative to other companies as well as to track performance. Earnings per share (eps) is calculated by taking the net earnings of the company, then dividing by the number of shares of the company.