Diluted eps意思

Diluted earnings per share (EPS) is a financial metric used to calculate the amount of earnings per share of a company's stock if all convertible securities were exercised or converted into common stock. This figure is important for investors because it gives them an idea of the potential dilution of their ownership interests in a company if convertible securities are exercised.

When a company issues convertible securities, such as convertible bonds or stock options, these securities can be converted into common stock at a later date. If these securities are converted, the number of shares outstanding will increase, which could dilute the earnings per share for existing shareholders.

To calculate diluted earnings per share, a company takes its net income and divides it by the sum of all outstanding shares, including the potential dilutive effects of convertible securities. This calculation gives investors a more conservative estimate of the company's earnings power because it takes into account the potential for future dilution.

Diluted earnings per share is typically reported in a company's financial statements and is used by investors and analysts to evaluate a company's financial performance and to make investment decisions. A higher diluted earnings per share can indicate that a company is more profitable and has more earning power per share, which can make the stock more attractive to investors.