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RCL FinCal_Diluted EPS
By Isfaqur Rahman

RCL FinCal_Diluted EPS

Concept:

Diluted EPS is a metric used in fundamental analysis to gauge a company’s quality of earnings per share assuming all convertible securities are exercised. Convertible securities include all outstanding convertible preferred shares, convertible debt, equity options (mainly employer-based options), and warrants.

Diluted EPS Calculation Steps:

Diluted EPS Calculation Steps

Example Case:

ABC ltd. has employee stock options that could be converted to 1.0 crore common shares and convertible preferred shares and debt that could be converted to 2.0 crore and 1.2 crore common shares respectively.

Diluted EPS Example Case

Basic vs Diluted EPS

Download the calculation Template: RCL FinCal_Diluted EPS

 

To learn about Restated EPS Calculation click here: RCL FinCal_Restated EPS

To learn about Basic EPS Calculation click here: RCL FinCal_Basic EPS

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  • June 24, 2020

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