### Earnings Per Share Assignment Help, Get Accounting Homework Help Service Online

Overview Of Earnings Per Share

Earnings per share equals to the net income a company generates per share of the company. It is an important indicator of the profitability of a company and is widely used by analysts and investors before making a decision regarding investments in the shares of a company. Typically a higher Earnings per Share ratio is desirable. It means that the company is more profitable as it is indicative of the amount, in theory, available for payment to common shareholders.

Calculations

Earnings per share are calculated as follows-

Earnings per share = Net Profit after Tax/Total Number of Outstanding Shares of the Company

The numerator for the ratio is derived from the profit and loss statement for the year, which is in accordance with the generally accepted accounting principles. It is important to note that Net profit is arrived at, after deducting the applicable tax. Dividend paid to reference shareholder is also deducted from the numerator before computing the ratio.

The denominator of the ratio comprises the number of average shares of common stock outstanding and not the average common stockholders' equity.

Earnings per Share can also be calculated as

Weighted earnings per share = (Net Profit after Tax - Total Dividends)/Total Number of Outstanding Shares

Let us take a numerical example:

The following financials are of ABC Company for the year 2015.

Net Profit after Tax = USD 1,700,000

As on 31st December 2015

5.5% cumulative preferred stock outstanding = USD 3,500,000

USD 10 par value common stock outstanding 2015 = USD 2,380,000

During the year, the company has not issued neither issued common non preferred stock and hence the stock holding remains the same during the year.

Based on the financial above, Earnings Per share can be calculated as:

Net Profit After Tax Less Dividend on Preference Shares = 1,700,000 - (5.5% * 3,500,000)

Net Profit after Tax less Dividend on Preference Shares = 1,507,500

Total Number of Outstanding Shares = 2,380,000/10

Total Number of Outstanding Shares = 238,000

Hence the Earnings per Share = USD 6.33 per share

In others words, it means that for one common stock held, the shareholder is entitled to USD 6.33 of net profits, in theory.

Sometimes, Earnings per Share is also includes convertible shares as well as warrants while taking the outstanding shares figure. The Earnings per share ratio is also indicative of the amount of flexibility a company has in increasing its dividend payouts. However some companies might be deploying extra cash available with them in the business for growth and expansion purposes. Further the ratio cannot be looked at on a standalone basis. For the same company it is important to observe the ratio over a period of time, if it is increasing it means the company is either earning more for every shareholder or it could be due to reduction in base of the number of shares. Similarly a declining trend in the ratio also needs to be probed into.

How we help students in Accounting Assignment - Homework

As the case is in most accounting subjects, ratio analysis is not mere calculations from numbers picked simply from financial statements. It goes a lot beyond numbers as it requires considerable expertise in picking the right number and then analysing it in context of the business situation, events and industry scenario.

All in all accounting subjects are interconnected and it gets difficult for students to comprehend the finer nuances and apply the theory in practise accurately.

Do not worry we are here to help you with it. We provide tailor made solutions for each of your assignments within the framework of your curriculum and specific assignment guidelines. We help you submit a high quality assignment solution and on time thereby improving your grades. All this is done at a very competitive price.

Why choose us for Accounting Assignment help:

We have long standing experience in assisting students with their assignments across geographies and university levels. We are very committed to provide you with an optimal output which is original and free of plagiarism.

We have a high profile team of Masters and PhD degree holders in the relevant field who have industry as well as academic experience. Our team is very well equipped not just in terms of their domain knowledge but also in assessing the unique needs in terms of presentation, content depth and writing skills. Once your solution is prepared it is thoroughly checked and rechecked for any errors in the content as well as language and if it has adhered to your brief.

To avail of our services, all you need to do is upload your assignment brief and deadline. We ensure the solution reaches you well before the deadline so that you have time to review and understand the subject. Our aim like yours is to help you maximize your grade.

Accounting Assignment Help - Homework Help from Qualified and Experienced Expert Writers

We offer assignment help service online which is most popular and liked all over the world. Our experts are helping students for preparing accounts assignments with step by step explanations. The accounting writers not just help in writing assignments but also provide better learning of accounting concepts. Our accounting assignment help service has covered all sub-domains and topics under accounting. We offer accounting assignment help, accounting homework help, other writings services including accounting term papers writing help, essays, research papers, case studies or case analysis writing help, and paper editing, formatting and referencing services.

Few simple steps to get your accounting assignments done online!

• Ask an Expert - Submit requirement
• Get quote and make payment
• Work is allocated to Accounting Writers
• Sent to you after completion and quality check
• Unlimited revisions till you are done.

Glossary- Earnings Per Share Assignment Help, Earnings Per Share Homework Help, Earnings Per Share Assignment Tutors, Earnings Per Share Solutions, Earnings Per Share Answers, Profitability Analysis Ratios Assignment Tutors

### Let us Explain How Assignment Service Works?

Follow just three simple steps to get your classroom assignment/assessment done online from best qualified and experienced tutors! Let's see how it works?

Find customized step by step solutions with Guaranteed Satisfaction!