Diluted Earnings Per Share
Diluted Earnings Per Share (Diluted EPS) is the earnings per share metric that assumes all dilutive securities—such as stock options, warrants, and convertible debt—are converted into common shares. It provides a conservative view of earnings per share under potential dilution.
Example: In the quarterly report, the company shows basic EPS of $1.20 and diluted EPS of $1.15, reflecting the impact of stock options and convertible notes.
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