ESP = $1,000,000 \/ 500,000 = $2<\/span><\/span><\/span><\/p>\nSo, the earnings per share for XYZ Corporation would be $2. This means that for each share of common stock, the company earned $2 in profit during that fiscal year.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-25180","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"
Definition Earnings per share (EPS) is a financial metric that calculates the portion of a company’s profit allocated to each outstanding share of its common stock. What is earnings per share? It is often used as an indicator of a company’s profitability and is calculated by dividing the company’s net earnings by the number of outstanding shares. EPS provides insight into how much profit a company generates for each share of its stock, which can be useful for investors and analysts evaluating a company’s financial performance. Earnings per share is calculated using the formula: ESP = Net income \/ Number…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary\/25180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=25180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}