Earnings per share is the quotient of a company's net income divided by the number of shares of stock it has outstanding. In other words, EPS is a company's profit expressed on a per-share basis.

For example, if the price of the stock today is ... When calculating a company's earnings per share, it is important to use the diluted EPS, not the basic EPS. Suppose that a company's shares ...

How do you know whether a business or project is likely to make for a successful investment? Financial analysis is the key to determining the viability and potential profitability of any venture.