1, net profit
Net profit refers to the profit of an enterprise after deducting various expenses in a certain period of time, which is usually the "net profit" item in the annual report.
2. Total share capital
Total share capital refers to the total number of all shares issued by an enterprise, including common shares and preferred shares.
3. Calculation example
Assuming that a company's annual net profit is 6,543,800,000 yuan and its total share capital is 50,000,000 shares, the earnings per share = 654.38+0000/5000 = 0.2 yuan.
Significance and influencing factors of earnings per share
Earnings per share is one of the important indicators to measure the profitability of a company, which shows how much profit can be obtained per share. Investors usually refer to earnings per share to evaluate the profitability and value of a company.
influencing factor
Earnings per share are affected by many factors, including the company's profit level, tax policy, capital stock structure, capital expenditure and so on. Profitability is the most direct factor, and the growth of net profit will drive the growth of earnings per share.
P/E ratio and earnings per share
P/E ratio is the ratio of the market price of a stock to its earnings per share. The high P/E ratio shows that the market has good expectations for the company's future earnings, and investors are willing to pay higher prices to buy shares.
Earnings per share and dividends
Earnings per share are also related to the company's dividend policy. High earnings per share usually means that the company has enough profitability to pay higher cash dividends.
Earnings per share limit
Earnings per share is not a complete performance evaluation index of a company, and can not reflect the company's liabilities, asset quality and cash flow and other important factors. Therefore, investors need to comprehensively consider other financial indicators when making investment decisions.
Summary: Earnings per share is an important indicator to measure a company's profitability. The calculation formula is net profit divided by total share capital. Investors can evaluate the company's profitability through earnings per share and make investment decisions by referring to the price-earnings ratio and other indicators. However, it should be noted that earnings per share is not the only evaluation criterion, and other financial indicators need to be considered comprehensively.