How Do You Spell ANNUAL EARNINGS PER SHARE?
Pronunciation: [ˈanjuːə͡l ˈɜːnɪŋz pɜː ʃˈe͡ə] (IPA) 
Pronunciation: [ˈanjuːə͡l ˈɜːnɪŋz pɜː ʃˈe͡ə] (IPA)
Annual earnings per share refers to a financial metric that evaluates a company's profitability and indicates the portion of earnings attributable to each outstanding share of common stock over a one-year period. It is calculated by dividing the company's net income for the year by its weighted average number of outstanding shares.
Net income is the total revenue generated by the company after deducting all expenses, including operating costs, taxes, interest, and depreciation. This figure represents the profit earned by the company during the fiscal year. The weighted average number of outstanding shares refers to the average number of shares outstanding during the year, taking into account any changes in the number of shares due to stock issuances or repurchases.
Annual earnings per share is an important measure as it provides insight into a company's profitability on a per share basis. It assists investors and analysts in evaluating the company's financial performance and comparing it with industry peers. A higher earnings per share generally indicates a more profitable company. However, it is crucial to consider other factors such as revenue growth, operating expenses, and debt levels to gain a comprehensive understanding of a company's financial health.
