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.
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.