Earnings per share

Earnings per share (english earnings per share, EPS short ) is an indicator for assessing the profitability of a company that needs to be published in both the IAS / IFRS and U.S. GAAP for listed companies respectively in the financial statements. This figure represents a special form of return on equity

• 2.1 Numerical Example

Determination

For the calculation of this ratio of consolidated net income of the company divided by the average - weighted outstanding during the period Number of shares ( in the period studied ).

Determination for different classes of shares

(For example, for ordinary and preference shares) If dividends are paid is different for different classes of shares, in addition to distinguish between the Plasma and thesauriertem profit:

The proportionate undistributed consolidated net income is the share of net income, which devolved to the relevant class of shares after profit distribution rules contractual or statutory moderate.

Adjusting for dilutive effects

Diluted earnings per share exercisable stock options exist ( new shares) and convertible bonds, as is also shown under the light of possible capital increases the option is exercised. , Method of application - The so-called treasury stock is provided that the total number of shares is adjusted for the standing in the money options (ie maximum number of shares that are theoretically issued with the exercise of the options, regardless of the possible exercise period ) minus the number of shares acquired at the current price in the market with the issue of money can be.

Numerical example

• There are 100 shares; also entitle 10 options to purchase shares at a price of € 5; the current share price is at € 10
• The options are in the money, since the issue price is lower than the current market price ( € 5 < € 10). If the options are exercised, a maximum of 10 shares with a cash inflow for the company of € 50 ( € 10 x 5) are emitted. At the current rate, the company could acquire for 5 shares. The diluted number of shares in the denominator is therefore 105 (100 10-5 )