When deciding where to invest your money, there are different ratios you can use to find the right companies to back. One of them is earnings per share (EPS), which is one way to measure a company’s profitability.
Earnings per share is a profitability indicator, and it is just one of several ratios that can gauge a company’s financial health.
REQUIRED: (20 marks)
Discuss why EPS calculations are essential and what would constitute a good EPS.
Please make use of the Woolworths Holdings 2023 Financial Statements, provided as one of the compulsory sources, and evaluate their different EPS calculations and the reason for each of the calculations, including the adjustments made and why they made the adjustments to the figures.
Please see PDF for detailed instructions, word count and compulsory resources.