Basic earnings per share is the total net earnings over a period divided by the number of shares issued. It helps investors and analysts assign a value to shares and measure the company’s performance. A decrease in basic EPS may indicate a problem that needs to be investigated. Basic earnings per share, also known as […]
Cash earnings per share is a measure of a company’s financial performance calculated by dividing operating cash flow by the number of fully diluted shares. It is a more objective measure than basic earnings per share, as it is less influenced by subjective judgments and accounting policies. Non-cash items such as depreciation and amortization are […]
Earnings per share (EPS) measures how well a company is using money invested in it when it went public. Diluted EPS takes into account the possibility of stock options and convertible bonds increasing the total number of shares, making it easier to compare companies on an equal footing. Two adjustments are made to the basic […]
Basic earnings per share is calculated by dividing a company’s net income by the number of shares issued. This figure is used by analysts and investors to value stocks and measure expected returns. A decline in basic earnings per share may indicate a change in the company’s financial situation, which may require investigation and corrective […]
Cash earnings per share is a measure of a company’s financial performance that uses operating cash flow divided by fully diluted shares. It includes non-cash items in profit and is more objective than basic earnings per share. It is useful for comparing a company’s performance against competitors or over different periods. A company’s financial performance […]
