Finance

Calculate earnings per share (EPS)

How it works in Excel

• B1 is net income.
• B2 is preferred dividends, which are taken out.
• B3 is the number of common shares.
• Use the weighted average of shares for the period.

The idea in general

It splits the profit belonging to common owners across every share.

What I assumed

• Net income is in B1, preferred dividends are in B2 and shares are in B3.

Check the result on your own data before relying on it.