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Earning per share(EPS) is counted by dividing the total earning with total number of shares of the particular company.

EPS increases when total earning of the company increases in any financial year. Opposite to that is decrease in EPS.

On the other ways, if total number of shares of the company increases then the earning gets divided among many shares and consequently there is seen reduction in EPS.

How the total no. share may increase ? It may be so in some of the following ways;

1. Follow up public offer(FPO)

2.Bonous share allotment

i.e. in the ways through which the total no. of shares increases on condition that if earning remain same.

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