Retained Earnings per Share (REPS)
factor.formula
Retained Earnings Per Share (REPS):
This formula calculates retained earnings per share (REPS) with the numerator being the retained earnings for the most recent reporting period and the denominator being the total shares for the most recent period.
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Refers to the total amount of profit accumulated by a company at the end of the most recent reporting period (such as a quarter or year) that has not been distributed to shareholders. It represents the profits generated by the company's operating activities that can be used for reinvestment or future dividends. Retained earnings are an important indicator of a company's self-accumulation ability.
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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. Total share capital is an important indicator of a company's size and shareholder base. It should be noted that the total share capital used here is not the outstanding share capital, which includes all issued shares.
factor.explanation
Retained earnings per share (REPS) measures the accumulated undistributed profits for each share of a company's common stock held. It reflects the company's ability to accumulate profits over the long term and retain profits for future development. A higher REPS value generally means that the company is more profitable and has the ability to reinvest and create shareholder value. Compared with pure earnings per share (EPS), REPS provides a more comprehensive perspective because it focuses on the company's long-term accumulated profits rather than just the profits of a certain period. Investors can use REPS to assess the company's financial health and future growth potential. It should be noted that REPS is not directly equal to the actual cash return that shareholders can obtain, because this part of the income may be used for future operations, investment or other purposes. Investors need to make a comprehensive assessment in combination with other financial indicators.