Retained Earnings Per Share
factor.formula
Retained Earnings Per Share (REPS) =
The formula calculates the company's retained earnings per common share during a specific reporting period.
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Refers to the total amount of retained earnings accumulated by a company at the end of the most recent reporting period (such as the end of a quarter, half year, or year), also known as retained earnings. This value can usually be found in the balance sheet and is the total amount of profits accumulated by the company's operating activities over the years that have not yet been distributed to shareholders in the form of dividends or transferred to capital. It includes the net profit generated by operations over the years and other factors that may adjust retained earnings, such as changes in accounting standards.
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Refers to the total number of common shares issued by a company at the end of the most recent reporting period. This value can usually be found on the balance sheet or in periodic reports disclosed by the company. Total share capital is the denominator used to allocate the total retained earnings to each share to get the per share indicator. It should be noted here that preferred shares are not included in total share capital.
factor.explanation
This indicator reflects the company's accumulated retained earnings per share. Retained earnings reflect the company's historical profitability and are potential resources that the company can use for future development, debt repayment or return to shareholders. The higher the REPS value, the more retained earnings the company has accumulated and the higher the potential value. This indicator can be used to compare the value of different companies horizontally, or to compare the value changes of the same company in different periods vertically. Combined with other financial indicators and market information, REPS can provide investors with a more comprehensive basis for investment decisions. It should be noted that REPS is only a financial indicator and cannot be used alone as the basis for investment decisions. It is also necessary to consider multiple factors such as industry, company development stage, and market environment.