Calculate Earnings Per Share (EPS) to determine how much profit a company allocates to each outstanding share of common stock. EPS is a fundamental indicator of a company's profitability and is closely watched by investors.
Subtracts preferred dividends from net income and divides by the weighted average number of common shares outstanding during the period.
Compute your DTI ratio to assess loan eligibility and financial health.
Measure financial leverage using the debt-to-equity ratio.
Evaluate short-term liquidity with the current ratio.
Measure immediate liquidity using the quick (acid-test) ratio.
Evaluate stock valuation using the Price-to-Earnings ratio.
Measure profitability relative to shareholders' equity with ROE.