Differentiate between Earnings per share (EPS) and dilute Earnings per share (D-EPS).

The major differences between Earnings per share (EPS) and dilute Earnings per share (D-EPS) are as follows −

Earnings per share (EPS)	Dilute Earnings per share (D-EPS)
Basic earnings per equity share of a company is calculated.	Calculates earnings per convertible share of a company.
Main purpose is to calculate profitability of a company.	Main purpose is to calculate profitability of a company which includes convertible securities.
Less significance.	More significance.
Common shares are included in calculations.	Common shares, preferred shares, debt etc. are included in calculations.
More value of measure.	Less value of measure.
Easy to calculate.	More complicated to calculate than EPS.

Mandalika

Updated on: 25-Sep-2020

101 Views

Get certified by completing the course

Get Started