Filter by Categories
Accounting
Banking

Financial Analysis




EPS


It stands for earnings per share; a financial ratio that measures the relationship between a company’s profits and the ownership stake of its common shareholders. It is typically reported on the income statement after net income. This ratio usually come in two different forms: basic EPS and diluted EPS. The first form is given by the following:

Basic Earnings Per Share

Generally, EPS represents the amount of income available to common shareholders for each share of common stock outstanding. For example, a company with 1 million shares outstanding has reported a net income of $2 million. Its basic EPS is then:

Basic EPS= 1 million/ $2 million = $0.5 per share.



ABC
The financial analysis of companies is essentially undertaken with the aim to assess their performance in light of their objectives and strategies ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*