EBIT to number of shares and Earnings to number of shares

EBIT to number of shares and Earnings to number of shares



EBIT to number of shares and Earnings to number of shares

Introduction

The study is related to the earnings to number of shares that is earning per share and the EBIT to number of shares. The study focuses on the factors that an investor should consider while investing so that he can make a reasonable and viable decision while investing. It focuses on the issue that is there is a relationship between EBIT to number of shares and the earnings to number of shares. It is the consolidated net profit after minority interests between the numbers of shares adjusted. The growth of this ratio is what else an investor should look above the total profit growth as it may be the fact that companies with high growth in profits but a capital injection to dilute this evolution. Performance is given to each share issued, one of the most important variables to assess the performance of an investment in shares.

Review of Literature

The EBIT to number of shares and the earnings to number of shares reflect the theoretical enrichment, a shareholder holding a share, in the course of a year. The benefit is in fact the net share accruing to the shareholders of the wealth created by the firm during that year. The earnings per share are subject to a very precise calculation, the analyst usually corrects net income group share published Exceptional operations. (Conroy and Robert, 1999)

EBIT to number of shares and the earnings to number of shares are the financial measures that are equal to the ratio of net profit of the company available for distribution to the annual average number of ordinary shares. Earnings per share, is one of the key financial indicators used to assess companies on the stock market, compared to the investment attractiveness of companies and their effectiveness. EPS is one of the few financial indicators, calculation rules are documented in a number of financial reporting standards (IAS, GAAP). (Conroy, Robert and Bruce, 1990) For a correct calculation of EBIT to number of shares and the earnings per share, it is important to determine the denominator used in the number of shares taking into account all took place one year changes in their composition, as well as the effect of dilution of capital.

Shares that were outstanding during the year included in the calculation in full. Shares that were outstanding during the year that is, were issued during the year or were outstanding at the beginning of the year, but then were purchased by the company included in the calculation of the share, proportionate period of their treatment. If during the year paid dividends in the form of additional shares, they are included in the calculation entirely. (George, 1986)

The value of EBIT to number of shares and the earnings per shares are calculated only taking into account the actual outstanding shares, called the ...