Earnings per share (EPS)

Earnings per share (EPS)

When it comes to humans, there are certain indicators that can communicate who among us are exceptionally wealthy. Lamborghinis, Burberry coats, and mansions, for example. When it comes to discerning a company's profitability, however, earnings per share (EPS) is one of the key indicators we can look to. To calculate EPS, the company subtracts the dividends they have paid for preferred stock from their net income, and then divides that figure by the average number of outstanding shares (which is always in flux).

 
 
Equities

Equities

Dividend

Dividend

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