Business: earnings per share
Self-tutoring about business terms: the tutor mentions the idea of earnings per share.
The following is according to my understanding.
Earnings per share is a metric typically applied to large companies with many shareholders and many, many shares outstanding. From a simple point of view, it is calculated as follows:
eps=(net income – preferred dividends)/(common shares outstanding)
As an example, McDonald’s has around 714 million shares outstanding. Its earnings per share for 2025 was $11.95.
Earnings per share can tell if a company is making money, but by itself it doesn’t tell percent profit.
Source:
macrotrends.net: McDonald’s Shares Outstanding 2012-2025|MCD
Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.
Leave a Reply
You must be logged in to post a comment.