From the course: Accounting Foundations
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Earnings per share
From the course: Accounting Foundations
Earnings per share
- Net income, revenues minus expenses, is the net amount of assets generated in doing business. Net income is the overall measure of a company's economic performance during the period in question, the month, or the quarter, or the year. Net income is the one number that summarizes the results of business operations of a company. Now, accountants have been working for over 500 years to fine tune the accounting rules to properly measure revenues and expenses, so that net income is a good measure of economic performance. For large companies, the most commonly discussed net income number is earnings per share. By the way, earnings means the same thing as net income. So earnings per share is just the amount of net income divided by the number of ownership shares in the company. Earnings per share, affectionately known as EPS, and what does the EEPs number mean? If you own one share of stock, then of Microsoft's net income…
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Contents
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The balance sheet and the income statement2m 16s
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Overview of the income statement3m 27s
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Earnings per share1m 34s
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Income statement example: Walmart's revenues2m 23s
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Income statement example: Walmart's expenses3m 9s
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Overview of the cash flow statement3m 9s
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Cash flow example2m 44s
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Summary of financial reporting2m 29s
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