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What is dilutive vs antidilutive for EPS?

Earnings per share can increase or decrease based on certain factors. If a factor increases EPS, then its considered antidilutive. If a factor decreases EPS, its considered dilutive. For a company, the goal is to increase basic EPS by minimizing items that would be dilutive.

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  • What is diluted EPS?

    Diluted EPS is a calculation that is used with a more complex capital structure. Like basic EPS, the ultimate purpose of the calculation is to compute the company’s earnings per share, however several other types of securities need to be included in the calculation. The other types include convertible securities, convertible debentures, warrants, and stock […]

  • What does it mean when EPS is diluted?

    Diluted EPS will always be lower than basic EPS if the company anything but common shareholders. The whole point of calculating diluted EPS is to understand what the impact to basic EPS would be if any of the dilutive securities were converted (convertible preferred stock, convertible bonds, or options/warrants). There are circumstances where basic EPS […]

  • What is the difference between basic EPS and diluted EPS?

    Basic earnings per share (EPS) will apply a simple capital structure as you only use common shares outstanding to compute EPS. Diluted earnings per share (EPS) will apply a complex capital structure and use additional investment vehicles that will have an impact of the calculation of the companies weighted average common shares outstanding for the […]