STUDY STEPS Understanding the Calculations Required in Preparing Earnings per Share Information Basic EPSĮPS is residual income available to common shareholders stated on a per-common-share basis, and is an indication of the amount of income that each common share earned during the year. This chapter examines how basic and diluted earnings per share are calculated, and discusses their usefulness in financial analysis. Calculation of earnings per share is more complicated if the entity has potential common shares such as convertible securities, options, warrants, or other dilutive securities that could dilute earnings per share if they are converted or exercised. Earnings per share (EPS) is a widely quoted financial ratio used by shareholders and potential investors in evaluating a company's profitability and value.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |