Earnings per share (EPS),
Definition of Earnings per share (EPS):
Net income of a firm divided by the number of its outstanding shares the shares held by the stockholders (shareholders). Primary earnings per share (also called fully diluted EPS) takes into account all shares currently outstanding, plus the number of shares that would be outstanding if all convertible bonds and convertible preferred stock (preference shares) were exchanged for common stock (ordinary shares). Also called net income per share. Formula: (Total revenue - Total expenses) ÷ Number of outstanding shares.
How to use Earnings per share (EPS) in a sentence?
- The earnings per share by the company were increasing steadily so we joined their team and enjoyed future success on every level.
- The company had experienced a profitable year which would allow it to offer more earnings per share for stockholders, this information would be well received at the annual business meeting.
- At the dinner, we discussed a lot of things that concerned the company and they were things like earnings per share .
Meaning of Earnings per share (EPS) & Earnings per share (EPS) Definition