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Home Accounting Ratios Analysis/Financial Ratios Analysis Earnings Per Share Ratio (EPS Ratio)
 
 

Earning Per Share Ratio (EPS Ratio):

In order to avoid confusion on account of the variant meanings of the tern capital employed, the overall profitability can also be judged by calculating 'earning per share'.

Formula:

The following formula is used to calculate EPS ratio.

Earnings Per Share Ratio = Net profit available for equity shareholder / Number of equity shares




 

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