[Verse 1] Sarah owns a thousand shares of TechCorp stock today Wondering what her slice is worth in the company's pay The balance sheet shows millions earned, but what does that convey? She needs to crack the code that splits the profits her way [Chorus] Basic EPS, divide with ease Net income over shares, if you please Weighted average, count them right Earnings per share shining bright Basic EPS, the profit key Shows what each share earned for me Net divided by the count That's the figure that will mount [Verse 2] TechCorp made ten million dollars profit this past year But shares outstanding shifted as the quarters came and went January started with eight million shares so clear By December's end twelve million shares were in the tent [Chorus] Basic EPS, divide with ease Net income over shares, if you please Weighted average, count them right Earnings per share shining bright Basic EPS, the profit key Shows what each share earned for me Net divided by the count That's the figure that will mount [Bridge] Don't just grab the ending number, that would lead you wrong Weight each month by time held, sing the proper song Eight months times eight million, four months times twelve Add them up and divide by twelve, profit on each shelf [Verse 3] Sixty-four plus forty-eight makes one hundred twelve Divide by twelve months total, nine-point-three-three delve Ten million net income divided by this weighted base Gives us one-oh-eight per share, profitability's face [Chorus] Basic EPS, divide with ease Net income over shares, if you please Weighted average, count them right Earnings per share shining bright Basic EPS, the profit key Shows what each share earned for me Net divided by the count That's the figure that will mount [Outro] When comparing different companies, EPS levels ground The metric that reveals how much each ownership piece found
← Non-Recurring Items | Diluted EPS and Complex Securities →