This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Ratio: Net Income divided by the number of shares issued and outstanding.
Example: The Round Number CompanyNet 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.
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Calculator for Earnings Per Share (EPS)
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The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.