What is earnings per share (EPS)?

Earnings per share (EPS) is a measure of a company's profitability that indicates how much profit each outstanding share of common stock has earned. It's calculated by dividing the company's net income by the total number of outstanding shares. The higher a company's EPS, the more profitable it is considered to be.

How do you calculate earnings per share (EPS)?

It's calculated by dividing the company's net income by the total number of outstanding shares. The higher a company's EPS, the more profitable it is considered to be. Earnings per share (EPS) is a company's net income subtracted by preferred dividends and then divided by the number of common shares it has outstanding.

What is basic earnings per share?

The amount earned by each share of common stock is represented by basic earnings per share in the company's income statement. Basic earnings per share are recorded in a company's income statement and are quite important for assessing the performance of firms with just common shares.