Assets = Liabilities + equities
therefore equities = Assets - liabilities
If Assets go down Equities reduce in value
Earnings = Equities / Total No. of shares
therefore earnings go down
Price earning ratio = market value per share / Earning per share Earning per share = Net income available to share holders / number of shares outstanding
what is the difference between basic earning per and adjusted earning per share?
ROE and ROA are both relating to the Income generating efficiency of a business. ROE gives the Income Generating Efficiency of business on the utilization of Share holders' Equity. Where as ROA refers to how efficient management is using its assets to generate earning.
Earning per share is that per share amount of earning which is only relevant to common share holders of business and calculated as follows: EPS = Net income available to common shareholders / Outstanding shares
No, share capital and net assets are not the same. Share capital refers to the funds raised by a company through the issuance of shares to shareholders, representing ownership in the company. In contrast, net assets are calculated by subtracting total liabilities from total assets, reflecting the overall financial position of the company. While share capital contributes to net assets, they represent different financial concepts.
Diluted earning per share is only calculated when company has issued some conditional warrants or rights to purchase share to it's employees or other persons.
difficult to obtain the exalt number of equity share outstanding
Earning and dividend are two different things that's why they are also different from each other Example: Total Earning in 20xx = 1000 Dividend = 200 Number of shares = 100 Earning per share = 1000/100 = 10 Dividend per share = 200/100 = 2
earning per share
p/e
[Debit] Assets account [Credit] Share capital account
Yes share issue increase current assets as we received cash against share issuance and the general entry is: [Debit] Cash xxxxx [Credit] Share Capital xxxx