A measure of an entity’s marketing efficiency that is usually calculated by the dividing its total revenue (sales) by average total shares outstanding for a given year. It may cover a specified period whether quarterly, semi-annually, annually, or trailing twelve months (TTM).
As a formula, it is given as a financial ratio relating sales adjusted to discounts and returns to average total shares outstanding:
Revenue per share = (sales – discounts and returns)/ shares outstanding
For quarterly calculations:
Revenue per share (quarter) = quarterly revenues/ common shares outstanding
For trailing twelve months (TTM) results:
Revenue per share (TTM) = trailing 12 month revenues/ average common shares outstanding (quarterly) derived from the trailing 12 months
It is also known as sales per share.
