Earnings per Share

Earnings per Share is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. This equation is the most quoted statistics for publicly traded companies. Stockholders and potential investors want to know what their share of profits is, not just the total dollar amount. Presentation of profits on a per-share basis also allows the stockholder to relate earnings to what he or she paid for a share of stock or to the current trading price of a share of stock.

Input Variables:

N- Net Income

P- Preferred Dividends

W- Weighted Average Number of Common Shares Outstanding

Output for Formula:

Returns the Earnings per Share