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imported>Doug Williamson |
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| ''Financial ratio analysis - performance ratios.'' | | ''Banking - capital adequacy''. |
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| (EPS or eps).
| | A bank's internal assessment of the amount of capital deemed necessary to support the risks to which it is exposed. |
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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 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 == |
| * [[Bootstrap effect]] | | * [[Capital adequacy]] |
| * [[Diluted earnings per share]]
| | * [[Economic profit]] |
| * [[DPS]]
| | * [[Pillar 1]] |
| * [[Earnings]]
| | * [[Pillar 2]] |
| * [[Economic value added]] | | * [[Pillar 3]] |
| * [[IAS 33]]
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| * [[FRS 102]] | |
| * [[Ordinary shares]] | |
| * [[Price to earnings ratio]] | |
| * [[Profit attributable to ordinary shareholders]]
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| * [[Shareholder value]]
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| [[Category:Accounting,_tax_and_regulation]]
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Revision as of 21:11, 29 October 2016
Banking - capital adequacy.
A bank's internal assessment of the amount of capital deemed necessary to support the risks to which it is exposed.
See also