After-tax profit per share generally refers to earnings per share, namely earnings per share (EPS), refers to the ratio of after-tax profit to the total amount of capital stock. Is the common shareholders each hold a share can enjoy the enterprise net profit or need to bear the enterprise net loss.
Earnings per share is usually used to reflect the operating results of enterprises, measure the profit level of common stock and investment risk, and is one of the important financial indicators for investors and other information users to evaluate the profitability of enterprises, predict the growth potential of enterprises, and then make relevant economic decisions. In the income statement, Article 9 lists “basic earnings per share” and “diluted earnings per share” items.
Among the many tools for the basic analysis of stock investment, EPS is also one of the most common reference indicators, like price-earnings ratio, price-to-book ratio, discounted cash flow and other indicators.
This ratio reflects the after-tax profit generated per share. The higher the ratio, the more profits are being made. If the company has only common stock, net income is net profit after tax, and the number of shares is the number of common shares outstanding. If the company still has preferred stock, dividends distributed to preferred shareholders should be deducted from net income after tax.