Why are Earnings per Share important?

Q: What do the Retained earnings represent?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: difference between Gross Earnings and Net Earnings

A: Gross earnings and Net earnings are two terms used in financial accounting while computation of the…

Q: What impact does an increase in revenue have on retained earnings?

A: Revenue, almost referred to as gross sales and it affects retained earnings since any increases in…

Q: Define the term Earnings per common share?

A: Earnings per common share: A company generate the portion of profit or loss every year. Earnings per…

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: What do earnings per share report, and how is it calculated?

A: Earnings per share (EPS): It refers to the share of earnings earned by the shareholder on each…

Q: What do the Liquidity ratios show?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: When is the Book Value per Share used?

A: Book Value Per Share:   Book Value per share is a simple calculation of total shareholders’ equity,…

Q: what is meant by Profit and Cashflow and how they are different?

A: Each and every business organization deals in either goods or offering services to their customers…

Q: What is meant by earnings persistence?

A: Earning persistence is one of the attributes of accounting earnings. Basically, it means the…

Q: Define earnings quality.

A: Earnings quality refers to the ability of total income by predicting future earnings of the company.

Q: What are examples of each type of dividend?

A: Dividend:  Amounts that are paid regularly at the end of the year to the shareholder of the company…