In this video, learn how to compute EPS. This is important to understanding a company's stock price.
- For large companies, the most commonly discussed … net income number is earnings per share, … affectionately known as EPS. … Earnings mean the same thing as net income. … So earnings per share is just the amount of net income … divided by the number of ownership shares in the company. … For example, for the year ended June 30th, 2018, … Microsoft's net income was 16.571 billion dollars. … How long would it take me to count to 16.571 billion … if I counted one number every second. … Oh, not too long. … Just a little bit over 500 years. … That's a long time. … That's a big number. … 16.571 billion is a big number. … And none of us really has a concrete understanding … of how large the number is. … It troubles accountants a little bit to be reporting … a number that people can't even understand. … So we report earnings per share. … Think of a share of stock as evidence that I own … a portion of a company. … For Microsoft, there are 7.7 billion ownership shares … of Microsoft out there. …
- Describe line items that appear on financial statements.
- Differentiate between the three types of financial statements.
- Interpret current accounting issues and trends.
- Calculate the market capitalization of a company.
- Identify the most important expense for a retail company.
- Explain the use of common size financial statements.
Skill Level Beginner
Accounting Foundations: Internal Controlswith Kay Stice1h 46m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
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