Diluted EPS

The Diluted Earnings per Share calculator computes the diluted earnings per share based on the net income, average shares and other convertible instruments.

INSTRUCTIONS: Choose units and enter the following:

• (NI) Net Income
• (AS) Average Shares
• (OCI) Other Convertible Instruments

Diluted Earnings per Share (DEPS): The calculator returns the earnings in U.S. dollars.  However, this can be automatically converted to compatible units via the pull-down menu.

The Math / Science

The diluted earnings per share equation is a performance metric used to determine a firm's net income divided by the sum of it's average shares and other convertible instruments. 

   DEPS = NI/(AS+OCI)

Where:

• DEPS = Diluted Earnings per Share
• NI = Net Income
• AS = Avg Shares, which is the weighted average of common shares throughout the year.
• OCI = Other Convertible Instruments, which are any financial instrument that could possibly be converted into a common shares.