Earnings per share and Economic capital: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Expand.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
''Financial ratio analysis - performance ratios.''
''Banking - capital adequacy''.


(EPS or eps).
A bank's internal assessment of the amount of capital deemed necessary to support the risks to which it is exposed.
 
 
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 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'.
 
 
<span style="color:#4B0082">'''''EPS example'''''</span>
 
Earnings for the period are £40 million and the 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.




== 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]]
* [[FRS 102]]
* [[Ordinary shares]]
* [[Price to earnings ratio]]
* [[Profit attributable to ordinary shareholders]]
* [[Shareholder value]]
 
[[Category:Accounting,_tax_and_regulation]]

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