what is earning per share simple terms
Earnings per share is a measure of how much profit a company has generated. Companies usually report their earnings per share on a quarterly or yearly basis. Calculating earnings per share. Earnings per share is the portion of a company's profit that is allocated to each outstanding share of its common stock. It is calculated by taking the difference between a company's net income and dividends paid for preferred stock and then dividing that figure by the average number of shares outstanding.