Page 6 - PowerPoint Presentation

Earnings Per Share

Introduction

• Earnings per share (EPS) is a ratio widely used to

measure the performance of a company.

• EPS is also used to calculate earnings yields (EY) and

price earnings ratios (PE) that are used by investors

and financial analysts to measure companies’

performances

• Diluted earnings per share assists the users of financial

statements in evaluating the sensitivity of EPS with

regard to future changes in the capital structure of the

company.

• Headline earnings per share is required by the JSE

Listings Requirements (and not by IFRS) and must be

calculated in terms of Circular 02/13 Headline

Earnings, issued by SAICA.

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