Earnings per share: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
(Add link.) |
||
| (2 intermediate revisions by one other user not shown) | |||
| Line 21: | Line 21: | ||
:<span style="color:#4B0082">'''''EPS example'''''</span> | :<span style="color:#4B0082">'''''EPS example'''''</span> | ||
:Earnings for the period are £40 million and the number of shares is 50 million. | :Earnings for the period are £40 million and the weighted average number of shares is 50 million. | ||
:EPS = £40m / 50m | :EPS = £40m / 50m | ||
| Line 32: | Line 32: | ||
== See also == | == See also == | ||
* [[Adjusted earnings]] | |||
* [[Basic earnings per share]] | |||
* [[Bootstrap effect]] | * [[Bootstrap effect]] | ||
* [[Diluted earnings per share]] | * [[Diluted earnings per share]] | ||
| Line 40: | Line 42: | ||
* [[FRS 102]] | * [[FRS 102]] | ||
* [[Net profit]] | * [[Net profit]] | ||
* [[NOSH]] | |||
* [[Ordinary shares]] | * [[Ordinary shares]] | ||
* [[Pence]] | * [[Pence]] | ||
* [[Price to earnings ratio]] | * [[Price to earnings ratio]] | ||
* [[Profit attributable to ordinary shareholders]] | * [[Profit attributable to ordinary shareholders]] | ||
* [[Reported earnings]] | |||
* [[Shareholder value]] | * [[Shareholder value]] | ||
* [[Weighted average]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 20:38, 10 February 2024
Financial ratio analysis - performance ratios.
(EPS or eps).
EPS measures the annual profits earned for each ordinary share in a company.
In simple terms, EPS is calculated as:
Profits ÷ number of shares
Defining these terms more strictly, they are:
Profit after tax attributable to ordinary shareholders ÷ Weighted average number of shares in issue during the period.
Profit after tax attributable to ordinary shareholders is often known as 'earnings' or 'net profit'.
- EPS example
- Earnings for the period are £40 million and the weighted average number of shares is 50 million.
- EPS = £40m / 50m
- = £0.80 (= 80 pence)
Relevant accounting standards for the consistent calculation and reporting of Earnings per share include IAS 33 and Section 1 of FRS 102.
