Is it for every quarter? How to interpret EPS with yearly earnings?
Is there any way to calculate yearly profit of any particular share we purchase?
2006-10-27 03:41:07 · 2 answers · asked by HelloWorld 1 in Business & Finance ➔ Corporations
By Accounting principle, that is International accounting standard (IAS), companies are expected to present financial statement at the end of a financial year, by which they can inform their recipients of their earnings for the period. the interpretation of such statements are always stipulated in the accounting rules and regulations embedded in the IAS. Shares can be calculated annually. such computations could be made when the share owner has the knowledge of the profit of the company for a period. and the shareholder can forcast properly the expected profit for other periods.
2006-10-27 03:55:30 · answer #1 · answered by Nnamsco 3 · 0⤊ 0⤋
Most public companies announce their earnings every 3 months. If you want to interpret EPS, divide the total earnings by the amount of shares and you will get EPS.
100 dollars in earnings / 100 shares = 1 dollar EPS
You can calculate yearly profit from previous years, but can only estimate them in future years.
2006-10-31 19:34:06 · answer #2 · answered by Anthony M 1 · 0⤊ 0⤋