EPS: meaning, definitions and examples
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EPS
[ iː.piː.ɛs ]
financial term
EPS stands for Earnings Per Share, which is a financial metric used to assess a company's profitability on a per-share basis. It is calculated by dividing the net income of a company by its total number of outstanding shares. EPS is widely used by investors to gauge a company's financial health and to compare profitability between companies in the same industry.
Synonyms
earnings per share, profit per share.
Examples of usage
- The company's EPS increased significantly this quarter.
- Investors closely monitor EPS to evaluate performance.
- A higher EPS usually indicates better profitability.
electronic publishing
EPS also refers to Encapsulated PostScript, which is a file format used to describe images in the PostScript language. It is commonly used for vector graphics and can contain both textual and graphic data. EPS files are favored for their ability to be resized without loss of quality.
Synonyms
Encapsulated PostScript.
Examples of usage
- You can save your image as an EPS file for better scalability.
- Many graphic designers use EPS format for logos.
- EPS files are compatible with various design software.
Etymology
The term Earnings Per Share (EPS) originated in the financial industry as companies sought ways to quantify their profitability on a per-share basis. As public trading became more prevalent, particularly since the late 19th and early 20th centuries, the need for a standardized measure of financial performance grew. EPS became a crucial metric for investors to assess the attractiveness of a company’s stock price in relation to its earnings. In parallel, the Encapsulated PostScript format emerged from Adobe's development of the PostScript language in the mid-1980s, designed for desktop publishing and graphic design. It enabled the seamless transfer and high-quality rendering of images between different applications, thus enhancing the capabilities of graphic design and layout software. These two meanings of EPS highlight the diverse use of acronyms in different fields, showcasing how one acronym can bear critical importance in both finance and digital publishing.