Get Earnings Per Share Ratio PNG. 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. The calculation is used to determine company strength relative to other companies as well as to track performance.
In the united states, the financial accounting standards board (fasb).
And, as value investors know, the purchase price often makes the difference between a successful and unsuccessful investment. For example, a company with. .principles (gaap), must report earnings per share (eps) below the net income line in their income statements — giving eps a certain distinction among the diluted eps ratio. The earnings per share ratio, or simply earnings per share, or eps, is a corporation's net income after tax that is available to its common stockholders divided by the weighted average number of shares of common stock that are outstanding during the period of the earnings.
