What is Diluted Earnings Per Share ?

1469 reads · Last updated: December 5, 2024

Diluted EPS is a measurement used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. The diluted EPS is commonly lower than the simple or basic EPS.Convertible securities are outstanding convertible preferred shares, convertible debentures, stock options, and warrants.

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