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Financial Terms | |
Earnings per share of common stock |
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Definition of Earnings per share of common stockEarnings per share of common stockHow much profit a company made on each share of common stock this year.
Related Terms:Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accounting earningsearnings of a firm as reported on its income statement. Accounting periodThe period of time for which financial statements are produced – see also financial year. Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. Adjusted Cash Flow Provided by Continuing OperationsCash flow provided by operating ![]() Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades Annual fund operating expensesFor investment companies, the management fee and "other expenses," Annual percentage rate (APR)The periodic rate times the number of periods in a year. For example, a 5% annual percentage rate (APR)Interest rate that is annualized using simple interest. Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity PeriodThe time between each payment under an annuity. ![]() Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every authorized share capitalMaximum number of shares that the company is permitted to issue, as specified in the firm’s articles of incorporation. Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Authorized sharesThe number of shares of stock that the company is legally authorized to sell. Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in basic earnings per share (EPS)This important ratio equals the net Basic Earnings Power Ratiopercentage of earnings relative to total assets; indication of how Beta equation (Stocks)The beta of a stock is determined as follows: book value and book value per shareGenerally speaking, these terms BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Book Value per ShareThe book value of a company divided by the number of shares Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's capital stockOwnership shares issued by a business corporation. A business Capital StockThe total amount of plant, equipment, and other physical capital. cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash flow from operationsA firm's net cash inflow resulting directly from its regular operations Cash flow per common shareCash flow from operations minus preferred stock dividends, divided by the Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions CASH FLOWS FROM OPERATIONSA section on the cash-flow stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business. Commercial paperShort-term unsecured promissory notes issued by a corporation. The maturity of commercial paperShort-term unsecured notes issued by firms. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s performance Presentation Standards Implementation Common-base-year analysisThe representing of accounting information over multiple years as percentages common body of knowledge (CBK)the minimum set of knowledge needed by a person to function effectively in a particular field Common marketAn agreement between two or more countries that permits the free movement of capital Common SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends. common-size balance sheetBalance sheet that presents items as a percentage of total assets. common-size income statementIncome statement that presents items as a percentage of revenues. Common stockThese are securities that represent equity ownership in a company. common shares let an Common stockshares of ownership sold to the public. Common StockA financial security that represents an ownership claim on the common stockOwnership shares in a publicly held corporation. Common StockThat part of the capital stock of a corporation that carries voting rights and represents Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock marketThe market for trading equities, not including preferred stock. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings Compounding periodThe length of the time period (for example, a quarter in the case of quarterly compounding periodthe time between each interest computation Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Consigned stocksInventories owned by a company, but located on the premises Convertible exchangeable preferred stockConvertible preferred stock that may be exchanged, at the Convertible preferred stockPreferred stock that can be converted into common stock at the option of the holder. Core EarningsA measure of earnings that includes only the results of the primary operating Cost of Common StockThe rate of return required by the investors in the common stock of Cost of Preferred StockThe rate of return required by the investors in the preferred stock of Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Credit periodThe length of time for which the customer is granted credit. Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. Cumulative preferred stockPreferred stock whose dividends accrue, should the issuer not make timely degree of operating leveragea factor that indicates how a percentage change in sales, from the existing or current degree of operating leverage (DOL)percentage change in profits given a 1 percent change in sales. Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. diluted earnings per share (EPS)This measure of earnings per share Direct paperCommercial paper sold directly by the issuer to investors. Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Discontinued operationA business segment that has been or is planned to be closed or sold off. Discontinued OperationsNet income and the gain or loss on disposal of a business segment whose assets and operations are clearly distinguishable from the other assets and operations of an entity. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an dispersionthe degree of variability or difference; it is measured Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per shareDividends paid for the past 12 months divided by the number of common shares EarningsNet income for the company during the period. EarningsIn general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax. earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working Earnings ManagementThe active manipulation of earnings toward a predetermined target. Earnings per ShareA measure of the earnings generated by a company on a per Earnings per share (EPS)EPS, as it is called, is a company's profit divided by its number of outstanding earnings per share (EPS)See basic earnings per share and diluted earnings per share. Earnings retention ratioPlowback rate. Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |