Earnings per share is probably the single most widely watched financial ratio

Earnings per share is probably the single most widely

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Earnings per share is probably the single most widely watched financial ratio. Earnings Per Share (EPS) $61.2 − $0.2 46.6 Shares EPS = = $1.31 per share
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Return on Equity (ROE) Net Income − Preferred Dividends Average Common Stockholders’ Equity ROE = National Beverage’s income for 2016 was $61.2 million, preferred dividends were $0.2 million, and the average Common Stockholders’ Equity was $176.8 million. Return on equity is the amount earned for each dollar invested by common stockholders. $61.2 − $0.2 $176.8 ROE = = 34.5 percent
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Price/Earnings (P/E) Ratio Current Stock Price (per share) Earnings Per Share (annual) P/E = The P/E ratio is a measure of the value that investors place on a company’s common stock. National Beverage’s stock price was $61.86 when the company reported its 2016 EPS of $1.31. $ 61.86 $ 1.31 P/E = = 47.2
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