Earnings per share allocates earnings available to common shareholders across common shares.
Earnings per share allocates earnings available to common shareholders across common shares.
| Input | What it means |
|---|---|
| Net Income | Earnings after the relevant expenses, interest and taxes for the reporting period. |
| Dividends | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Common share | Use the measured or stated value for this item, with the unit or category shown beside the field. |
Income of 500,000 less preferred dividends of 50,000 across 100,000 shares gives EPS=4.50.
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.