Diluted EPS Tutorial - Chapters
00:00 Introduction to Diluted EPS
01:04 What is Diluted EPS
02:37 Simple vs Complex Capital Structure
04:53 Diluted EPS Formula
05:41 Diluted EPS Calculation Example
07:42 - Adjustments to Diluted EPS Formula
In this video, we will talk about Diluted EPS, how it is calculated, how it is used,
and the difference between basic and diluted EPS.
What is Diluted EPS?
Diluted EPS is a ratio to gauge the quality of Earnings Per Share of a firm if all
its securities were exercised.
Formula for Diluted EPS = (Net Income – Preferred Dividends)/(Weighted
Average Number of Shares Outstanding + Conversion of any Money Options,
Warrants, and Other Dilutive Securities)
Purposes of Diluted EPS
1. Ascertain an organization’s earnings per share
2. Diluted EPS is required for a complex capital structure
3. Used to assess a company’s financial health
#dilutedearningspershare #wallstreetmojo, #dilutedEPS
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