How to calculate eps?

Question

Accepted Answer

EPS (Earnings Per Share) is calculated by dividing the company's net income by the number of outstanding shares.

EPS = Net Income / Outstanding Shares
Net income is the company's total earnings after deducting expenses and taxes
Outstanding shares refer to the total number of shares held by investors
EPS is an important financial metric used to assess a company's profitability and performance
Higher EPS indicates higher profitability and potential for higher dividends
Example: If a company has a net income of $1 million and 1 million outstanding shares, the EPS would be $1

Accepted Answer

Earning before interest and tax - interest = Earning before tax
Earning before tax - tax = earning after tax
Earning after tax - fixed divide to preference share holder = earning to equity share holder.
Earning to equity share holder÷ no of outstanding share holder= earning per share.

How to calculate eps?

Top JPMorgan Chase & Co. Depository Operations Executive interview questions & answers