Earnings per share = (Net income - preferred dividends) / Common shares The income statement and balance sheet are used to obtain the period-end net earnings or income, number of common shares and ...

Earnings Per Share Formula. Here’s the earnings per share formula and let’s break down each piece… Earnings Per Share = Net Income / Shares Outstanding. To calculate earnings per share, you need to ...

The formula for diluted earnings per share is a company's net income (excluding preferred dividends) divided by its total share count - including both outstanding and diluted shares.

Identify total dividends from the income statement under "Retained Earnings." Divide total dividends by the number of outstanding shares. Use DPS to assess company's profitability and potential ...

Earnings per share is a measure that compares a company's net income compared to the outstanding shares. The price-to-earnings ratio, or P/E ratio , is another commonly used metric that factors in ...

Net income is also relevant to current investors, as businesses use net income to calculate their earnings per share, which provides a quick benchmark to compare companies.

How to Account for Retained Earnings on a Cash-Flow Statement. Net income is equal to revenues minus expenses. ... or $3 per share. Find the retained earnings at the start of the period.

Earnings per share is the net income made per share of stock within a given time period, typically quarterly or annually. To determine the EPS, the company's net profits are divided by the number ...

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock, serving as a profitability indicator.