Page 4 - PowerPoint Presentation

EARNINGS PER SHARE

Introduction

• Earnings per share and dividends per share are two of

the ratios that are most widely used by investors and

analysts of financial statements when evaluating the

profitability of a company.

• It is therefore essential that guidelines should be laid

down for the calculation and disclosure of earnings and

dividends per share and, where applicable, fully diluted

earnings per share in order to make it easier to

compare these ratios.

• Earnings per share can be measured as follows:

• basic earnings per share,

• diluted earnings per share, and

• headline earnings per share.

4