What is earnings per share? Earnings Per Share (EPS)

Earnings per share, or EPS in English, indicates the ratio of a company's net profit to the number of outstanding shares. It is a financial indicator that measures the profitability of a listed company per share. In actual use, the earnings per share calculation formula can be adjusted according to the operating models of different companies. For example, by making certain adjustments to the profit part, you can get adjusted earnings per share (Adjusted EPS), or by making certain adjustments to the number of circulating shares, you can get diluted earnings per share (Diluted EPS), so as to make a more reasonable assessment of the profitability of listed companies' circulating stocks. It should be noted that using earnings per share alone to analyze a listed company is still relatively one-sided. When specifically analyzing the operating capabilities of listed companies, it is still necessary to use other types of financial analysis indicators to conduct a more comprehensive analysis.