Earnings per share

Earnings per share (EPS) is a crucial financial metric that indicates the profitability of a company. It is calculated by dividing the company's net income by the number of outstanding shares. EPS provides investors with a clear understanding of how much profit a company is making on a per-share basis. This information is vital for making informed decisions about investing in a company, as it helps to gauge the company's financial health and performance. EPS is often used in conjunction with other financial ratios to evaluate the overall value and potential of a business. A higher EPS signifies greater profitability, making the company more attractive to investors.