Have to disagree aussie.EG Per Commsec:Earnings per share (EPS)...

Have to disagree aussie.

EG Per Commsec:

Earnings per share (EPS) is the proportion of a company’s profit that can be attributed to each outstanding ordinary share in the company.

EPS is worked out by taking a company’s net profit and dividing it by the number of ordinary shares on issue:

Net profit after tax ÷ number of shares on issue = EPS

Divs on ordinary shares are an application of profits ie determined by the directors of a company after net profit & EPS are known (one factor in which, as you alluded to aussie, are the cash requirements of the co going forward).

First, subtract the preferred dividends paid from the net income. This will tell you the total earnings available to common shareholders. Next, divide the earnings total you just calculated by the number of outstanding shares listed on the balance sheet. This will give you the EPS.Sep 24, 2018

How to Calculate Earnings Per Share on a Balance Sheet ...

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