diluted earnings per share
A measurement used to evaluate the quality of a company's earnings per share. Diluted earnings are calculated by adding convertible securities to outstanding shares and dividing that number into the company's net earnings. It is intended to convey a worst case scenario if every investor and employee with warrants, convertible debentures, and stock options exercised the option to convert them to outstanding shares. Compare to Basic Earnings Per Share.
Browse by Subjects
dilution
basic earnings per share (basic EPS)
primary earnings per share
income statement
anti-dilution provision
See All Related Terms »

vouching
sales per share
nominal account
loss carryback
Cash