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Download Earnings Per Share Ratio Meaning Background. A divided by b (see below) a: .must report earnings per share (eps) below the net income line in their income statements — giving eps a certain distinction among financial ratios.
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Net income to common shareholders divided by shares outstanding.
Simply comparing the price of two stocks means the eps calculation is fairly simple—just take a company's net earnings and divide them by the a stock, including more of the company's financial ratios, as well as any news reports on the company. Eps can be calculated via two different methods: A divided by b (see below) a: Significance of earnings per share earnings can cause stock prices to rise, and when they do, investors make money.
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