What is earnings per share?
EPS measures profit allocated to each outstanding share.
How is EPS calculated?
EPS equals net income minus preferred dividends divided by average shares.
Why is EPS important?
It indicates profitability and supports investment decisions.
What does a higher EPS mean?
Higher EPS indicates greater profitability per share.
Can EPS be manipulated?
Accounting choices can influence EPS, so investors review it alongside other metrics.