Calculating EPS | Evaluating a Company's Financial Health | Your Online Finance Dictionary
Earnings per share, or EPS, is a ratio that divides a company’s earnings by the number of shares outstanding to evaluate profitability and gain a pulse of the company’s financial health. In its most basic form, it is calculated as: EPS = (Net Income) / (Common Stock Outstanding Net Income, divided by the shares of outstanding Common Stock. To get a more accurate projection of earnings on a per share basis, both Net Income and Common Stock are often adjusted by investors. These values are found on the income statement and balance sheet. _______________________ 0:00 Calculating Earnings Per Share (EPS) 0:43 Three EPS Calculations 1:06 Adjustments to Net Income 1:55 Adjustments to Common Stock Outstanding 2:26 Share Dilution 2:40 EPS Question & Application _______________________ Talk with an advisor by emailing [email protected] Learn more by visiting the page: https://www.financestrategists.com/te... Check out the main Finance Strategists YouTube Page here: / @financestrategists4468 _______________________ Message from the founder: Here at Finance Strategists, we believe one of the best ways you can help someone is with their finances. We create helpful informational videos and content to help people take control of their finances. Finance Strategists plans to launch "Finance Strategists for Kids" where we teach fundamental financial concepts to kids in a clear manner allowing them to generate margin in their lives to bless other people. We believe raising up a generation of leaders with financial freedom can change individual lives, neighborhoods, countries, and the world. _________________________ 🔔 Hit the bell next to Subscribe so you don't miss a video! 📧 Fill out this form to receive the "Finance Word of the Day" in your inbox! 👨🏻💻 Watch our newest vids! - https://bit.ly/FS-Recently-Added 💃 To book Ranie for voiceover or spokeswoman, email [email protected] _________________________ Follow us on Socials: Website: FinanceStrategists.com Instagram: @financetrategists Twitter: @FinStrategists LinkedIn: https://bit.ly/FS-linkedin Facebook: https://bit.ly/Facebook-FS
