Work out earnings per share instantly with clear inputs, formula shown and shareable results.
Earnings per share divides the profit belonging to common shareholders — net income less preferred dividends — by the weighted average share count. The diluted figure adds shares that options and convertibles could create, which is the more conservative measure.
EPS
Basic = (Net income - preferred dividends) / weighted average shares; Diluted adds potential shares
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because shares issued or bought back mid-year were only outstanding for part of it.
Diluted, since existing option and convertible holders have a real claim on future earnings.