|
|
What is Reported Earnings per Share?
The earnings of a company is its profit, and so if we change the wording of earnings per share to profit per share the meaning should become a lot clearer. It is literally the amount of profit that has on average been earned by each share.
To be a little more precise, it is the level of net profit that is used to calculate the earnings per share, and any profit owed to preference shareholders or minority interests is taken off first. In other words the level of profit used is that profit that actually belongs to the ordinary shareholders.
| EARNINGS PER SHARE = |
Net profit |
|
|
Total number of shares issued |
Index | Previous | Next
|
