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Can you explain the importance of earnings per share (EPS)?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2022/05/17
Abdelrahman sakr
by Abdelrahman sakr , Finance Internship , Eshpetco

Earnings per share (EPS) is a figure describing a public company’s profit per outstanding share of stock, calculated on a quarterly or annual basis. EPS is arrived at by taking a company’s quarterly or annual net income and dividing by the number of its shares of stock outstanding. EPS is a basic yardstick of a company’s profitability and is used to tell investors whether the company is a safe bet.

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