Difference between revisions of "EPS"

Latest revision as of 00:54, 21 August 2020

Earnings per Share is the monetary value of earnings per outstanding share of common stock for a company.

Calculation

Preferred stock rights have precedence over common stock. Therefore, dividends on preferred shares are subtracted before calculating Earnings per Share.

Earnings per Share

=

Net Income – Preferred Dividends

Weighted Average Common Shares

where:

Net Income = Sales minus Cost of Goods Sold, Selling, General and Administrative Expenses, Operating Expenses, Depreciation, Discuss Contract Custom Solution, Discuss Contract Custom Solution, and Other Operational Expenses
Preferred Dividends =
Weighted Average Common Shares

Unit of measure: Currency

Metric(s)

ID	Name	Level	x
CO11	Cost of Goods Sold	2	CO11
CO13	Other Operational Expenses	2	CO13

Term(s)

ID	Name	x
Depreciation	Depreciation	Depreciation
IAS32	IAS 32 Presentation	IAS32
IAS33	IAS 33 Earnings per Share	IAS33

Earnings per Share 0 0 Financial, Reporting, GAAP, IFRS, Earnings, Share, Stock

@@ Line 1: / Line 1: @@
 {{this}} is the monetary value of earnings per outstanding share of common stock for a company.
 ===Calculation===
-{{math|{{this}}|{{frac|Profit - Preferred Dividends|Weighted Average Common Shares|}}}}
+Preferred stock rights have precedence over common stock. Therefore, dividends on preferred shares are subtracted before calculating {{this}}.
+{{math|{{this}}|{{frac|Net Income &#8211; Preferred Dividends|Weighted Average Common Shares|}}}}
 where:
-* Profit =
+* Net Income = Sales minus [[Link::m:CO11]], Selling, General and Administrative Expenses, Operating Expenses, [[Link::t:Depreciation]], [[Link::t:Interest]], [[Link::t:Taxes]], and [[Link::m:CO13]]
 * Preferred Dividends =
 * Weighted Average Common Shares