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imported>Doug Williamson |
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| ''Financial ratio analysis - performance ratios.''
| | The risk for a borrower of an adverse change in its borrowing margin. |
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| (EPS or eps).
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| EPS measures the annual profits earned for each ordinary share in a company.
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| In simple terms, EPS is calculated as:
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| Profits '''÷''' number of shares
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| Defining these terms more strictly, they are:
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| Profit after tax attributable to ordinary shareholders '''÷''' Weighted average number of shares in issue during the period.
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| Profit after tax attributable to ordinary shareholders is often known as 'earnings' or 'net profit'.
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| :<span style="color:#4B0082">'''''EPS example'''''</span>
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| :Earnings for the period are £40 million and the number of shares is 50 million.
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| :EPS = £40m / 50m
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| := '''£0.80''' (= 80 pence)
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| Relevant accounting standards for the consistent calculation and reporting of Earnings per share include IAS 33 and Section 1 of FRS 102.
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| == See also == | | == See also == |
| * [[Adjusted earnings]] | | *[[Margin]] |
| * [[Bootstrap effect]]
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| * [[Diluted earnings per share]]
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| * [[DPS]]
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| * [[Earnings]]
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| * [[Economic value added]]
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| * [[IAS 33]]
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| * [[FRS 102]]
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| * [[Net profit]]
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| * [[Ordinary shares]]
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| * [[Pence]]
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| * [[Price to earnings ratio]]
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| * [[Profit attributable to ordinary shareholders]]
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| * [[Reported earnings]]
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| * [[Shareholder value]]
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| [[Category:Accounting,_tax_and_regulation]]
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Revision as of 16:41, 5 May 2015
The risk for a borrower of an adverse change in its borrowing margin.
See also
