Retained earnings per share
factor.formula
Retained Earnings Per Share (REPS) =
in:
- :
Retained earnings in the most recent reporting period: refers to the company's accumulated undistributed profits at the end of the most recent reporting period. It is the profit remaining after deducting the portion distributed to shareholders from the company's profits. It is also called surplus reserves. This data comes from the company's balance sheet.
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Total common stock capital at the end of the most recent reporting period: refers to the total number of common shares issued by the company at the end of the most recent reporting period. This data comes from the company's balance sheet or statement of changes in equity. It is important to distinguish between total share capital and outstanding share capital. The total share capital is used here.
factor.explanation
Retained earnings per share (REPS) represents the accumulated retained earnings per common share of a company, and reflects the company's ability to reinvest and grow using its earnings. The higher the value of this indicator, the more profits the company has accumulated, and the higher its internal financing capacity and future growth potential may be, but it needs to be analyzed in combination with industry characteristics. Investors can use this indicator, combined with other financial indicators, to evaluate the company's operating conditions, profitability, and risk level.