Free Cash Flow Per Share

finance a la shmoop what is earnings per share or EPS? okay you know the lemonade

stand the one with 20 grand in sales and 16 grand in gross profits and yeah will [Balance sheet for Lemonade Stands R Us appears]

spare you the gross jokes you know the customer asks lemonade.. what the fly

was doing in his lemonade and yes of course she said the backstroke what else

would you expect from the people at Schmo really?

so after gross profits there were operating expenses like those and then

operating profits down here that 7,500 thing then there were taxes and yeah

there are always taxes we can grumble about and then finally net income aka [Net income appears on balance sheet]

earnings but then below earnings you'll see that there are a hundred shares in

this little company the founder owns 60 of them mom owns 10 the new stepdad owns

20 he was guilted into it by you know the divorce lawyer and Enrique the

gardener for some reason who has cleverly weaseled his way into the

families arts and minds owns the last 10 its annual report time and the investors

want to know what their earnings per share were so that they can all compare

relative performance on their investments right so the total earnings

of the company in this example was five thousand two hundred fifty bucks which

means that the earnings per share of our little lemonade stand company here or

that 5,250 figure divided by a hundred or 52.50 a share that's [EPS formula appears]

what each share earned if you divvy the company into a hundred little pie slices

or parts so yeah earnings per share equals earnings per slice o pie or wait

lemonade pie has that been done yet time for a new business venture what do you [A plate of lemonade pie appears]

think we're taking investors just call us please