Earnings per share
Earnings per share: use net income, preferred dividends, weighted average common shares. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
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Formula & explanation
Basic EPS = (net income − preferred dividends)/weighted average common shares
Variables & units
- Net income
- currency · minimum -1000000000000, maximum 1000000000000
- Preferred dividends
- currency · minimum 0, maximum 1000000000000
- Weighted average common shares
- shares · minimum 0.000001, maximum 1000000000000
Worked example
(100000−10000)/10000 gives9 per share.
Assumptions
Basic EPS; dilution and detailed accounting adjustments are excluded.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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