Overview

Google, IBM & Meta Certificates – 40% Off

One plan covers every Professional Certificate on Coursera.

Understanding Earnings Per Share (EPS) is essential for evaluating a company's financial performance and making informed investment decisions. In this course, you will develop both foundational and advanced knowledge of EPS by learning how to define key concepts, calculate Basic and Diluted EPS, and apply weighted average shares, stock dividend adjustments, and stock split adjustments. You will also examine the impact of convertible securities, preferred shares, convertible debt, and stock options on diluted EPS while applying the Treasury Stock Method to analyze complex financial scenarios. Designed for accounting students, finance professionals, aspiring financial analysts, and anyone seeking to strengthen financial statement analysis skills, this course combines conceptual understanding with practical application. Through structured lessons, step-by-step demonstrations, real-world examples, and comprehensive case studies, you will learn to interpret EPS calculations with accuracy and evaluate the effects of potential dilution on profitability per share. By the end of the course, you will be able to calculate and interpret Basic and Diluted EPS, distinguish between simple and complex capital structures, assess anti-dilutive conditions, and integrate multiple factors into comprehensive EPS analysis. If you want to build confidence in EPS calculations and improve your financial analysis and decision-making skills, this course provides a practical and structured learning experience.

Syllabus

Fundamentals of Earnings Per Share

This module introduces learners to the foundational concepts of Earnings Per Share (EPS), focusing on its importance as a financial performance indicator. Students will learn how to calculate basic EPS, apply weighted average shares, and understand adjustments due to stock dividends and splits. By distinguishing between simple and complex capital structures, learners will gain a strong basis for analyzing EPS in real-world financial statements.

Dilution and Advanced EPS Applications

This module explores the advanced aspects of EPS, with an emphasis on dilution effects caused by convertible securities and stock options. Learners will analyze the impact of preferred shares, convertible debt, and anti-dilutive conditions on EPS. Through the Treasury Stock Method and comprehensive case studies, students will acquire practical skills to interpret complex EPS scenarios and evaluate financial performance under potential dilution.