Diluted EPS Tutorial – Chapters 00:00 Introduction to Diluted EPS 01:04 What is Diluted EPS 02:37 Simple vs Complex Capital Structure 04:53 Diluted EPS Formula 05:41 Diluted EPS Calculation Example 07:42 – Adjustments to Diluted EPS Formula In this video, we will talk about Diluted EPS, how it is calculated, how it is used, and the difference between basic and diluted EPS. What is Diluted EPS? Diluted EPS is a ratio to gauge the quality of Earnings Per Share of a firm if all its securities were exercised. Formula for Diluted EPS = (Net Income – Preferred Dividends)/(Weighted Average Number of Shares Outstanding + Conversion of any Money Options, Warrants, and Other Dilutive Securities) Purposes of Diluted EPS 1. Ascertain an organization’s earnings per share 2. Diluted EPS is required for a complex capital structure 3. Used to assess a company’s financial health #dilutedearningspershare #wallstreetmojo, #dilutedEPS For more details, you …
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