Earnings per Share (EPS)
Earnings Per Share (EPS) APB #15; FASB # 128
- Book figure.
- Not cash dividend.
- Used in financial ratio analysis.
- Simple Structure--Only common stock; no potentially dilutive securities are present in the capital structure.
- Complex Structure--Potentially dilutive securities are present within the capital structure.
- “Dilutive” means the ability to influence the EPS in a downward direction--i.e., the inclusion of the dilutive security in the calculation decreases the resultant EPS figure.