Earnings per share reserve
factor.formula
Earnings per share reserve:
In the formula:
- :
Refers to the legal reserve that a company extracts from its after-tax profits to make up for losses, transfer capital or distribute dividends. This value is taken from the financial statements of the most recent reporting period and is an important part of the company's financial soundness.
- :
Refers to the total number of shares issued by the company, including common shares and other types of shares. This value is taken from the total number of shares corresponding to the surplus reserve reporting period and is the key denominator in calculating the per-share indicator.
factor.explanation
Earnings per share is an indicator that measures the strength of a company's accumulated earnings. It distributes the company's reserved earnings to each share. This indicator reflects the cumulative degree of a company's operating results, and indirectly reflects the company's financial stability and possible capital operation space in the future. Higher earnings per share may mean that the company has greater flexibility in dealing with future risks, carrying out capital expansion, or bringing returns to shareholders. However, it should be noted that this indicator should be analyzed in conjunction with the industry average and the company's historical data, and used in conjunction with other financial indicators to obtain a more comprehensive assessment.