Basic Earnings Per Share (EPS)

Fundamental Analysis Tools Financial Terms Dictionary

Contents

Basic earnings per share (EPS) tells investors how much of a firm’s net income comes from each common share.

For companies with a simple capital structure, where only ordinary shares were issued, it is enough to disclose this ratio to show their profitability.
Companies with complex capital structures should report both basic and diluted earnings per share to get a more accurate picture of their earnings.