# EPS (Earnings per Share) Ratio

## Earnings per Share Ratio Calculation

 Out put EPS (Earnings per Share) Ratio

Earnings per share (EPS) ratio formula & calculator to find the ratio between the net income after deducting the preferred dividends to the total number of common shares of a company. Among many other investors' tool, this is also one of the important investor's tools to calculate the reliability of a company. Earnings per share ratio often abbreviated as EPS ratio, also known as net income per share ratio. It's one of important measurements to determine if investing in a company would be profitable. It tells the investors how much revenue has been generated by each share of a company stock. A higher EPS ratio generally indicates that the company is making more profit and provides more dividend on its each shares, and a lower or negative EPS ratio indicates that the company is not productive enough to make it profitable and provides diminished value for each shares of a stocks of a company.

Formula
EPS (Earnings per Share) Ratio = (Net Income - Preferred Dividends)/Total Number of Common Shares Outstanding