EPS example

EPS is short for Earnings Per Share. When you look up EPS, you often find two numbers. For example, for Apple in FY22, the basic earnings per share was $6.15, and diluted EPS $6.11. The numerator in the calculation of both types of EPS is the same: net income of $99.8 billion. The denominator in the EPS calculation is the number of shares, and here we have a difference between the basic and the diluted number. Basic EPS: $99.8B divided by 16.2 billion shares. Diluted EPS: $99.8B divided by 16.3 billion shares.

The basic number of shares is the number that currently exists, the number below it is the number that could exist if all convertible securities were exercised at the earliest point in time.

Philip de Vroe (The Finance Storyteller) aims to make accounting, finance and investing enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better investing decisions. Philip delivers #financetraining in various formats: YouTube videos, livestreams, classroom sessions, and webinars. Connect with me through Linked In!

[T_m-]

I do really like those shorts, very informative :)
Thank you for the work :D

[alexandramuzyka]

“Were exercised” means sold? Or also purchased? Definition of exercise says both variants >> “to put into effect the right to buy or sell” I am bit confused