What is EPS?

ROA, ROE, ROI, PE, EPS… Welcome to the world of financial accounting ratios. Confusing for some and comforting for others, these tools can be highly effective in making investment decisions. Given their simplicity, a number-averse person too can use them. Significant amongst the lot is the concept of earning per share (EPS). Companies are required to report both, the basic and the diluted EPS in their financial reports. What is EPS?EPS is a measure to track the profitability and success of a

This article was originally published on June 22, 2007.