The Income|Outcome^® Contextuary

Ratio: Net Income divided by the number of shares issued and outstanding.

Example: The Round Number Company Net Income = 30 If the Round Number Company has issued 200 shares, Earnings per Share = 30/200 = 0.15

EPS is the net benefit to the shareholder per share; it does not say whether the earnings are paid out as dividends or retained in the company for growth.