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How can we calculate EPS

How can we calculate EPS?

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It is computed by dividing the net profit after taxes and preference dividend by the sum total number of equity shares. It is a small difference of return on equity capital ratio. The method of Earning per share ratio is illustrated below:-

‘[Earnings per share (EPS) Ratio = (Net profit after tax - Preference dividend) / No. of equity shares (common shares)]’

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