Categories
Accounting

What is earnings per share ?

Expert Comptable Tours What is earnings per shareWhat is earnings per share : publicly owned companies must report earnings per share (EPS) below the net income line in their income statements. This is mandated by generally accepted accounting practices (GAAP). The EPS gives investors a means of determining the amount the business earned on its stock share investments. In other words, EPS tells investors how much net income the business earned for each stock share they own. It’s calculated by dividing net income by the total number of capital stock share. It’s important to the stockholders who want the net income of the business to be communicated to them on a per share basis so they can compare it with the market price of their shares.

Private businesses don’t have to report EPS because stockholders focus more on the business’s total net income.

Publicly-held companies actually report two EPS figures, unless they have what’s known as a simple capital structure. Most publicly-held companies though, have complex capital structures and have to report two EPS figures. One is called the basic EPS; the other is called the diluted EPS. Basic EPS is based on the number of stock shares that are outstanding. Diluted earnings are based on shares that are outstanding and shares that may be issued in the future in the form of stock options.

Obviously this is a complicated process. An accountant has to adjust the EPS formula for any number of occurrences or changes in the business. A business might issue additional stock shares during the year and buy back some of its own shares. Or it might issue several classes of stock, which will cause net income to be divided into two or more pools – one pool for each class of stock. A merger, acquisition or divestiture will also impact the formula for EPS, explains Expert Comptable Tours

 

Categories
Carpet Cleaning

Carpet Cleaning Myths to Junk

Carpet cleaning Charlotte ncCarpets have been around since time immemorial and so have carpet cleaning methods. However, new methods of professional carpet cleaning have given rise to a lot of myths related to carpet cleaning which dissuade people from getting and keeping their carpets clean. A dirty carpet is not just full of dust and grime; it is a breeding spot for germs and  diseases. In fact, dirty carpets pollute the air inside your house resulting in a number of ailments that your family might suffer from. Therefore, in order to keep your family healthy and your home clean, it is necessary to clean your carpet regularly. If the myths given below have been keeping you from cleaning your carpets, then we bust them here so that you may give yourself and your family a cleaner and healthier home.

You Should Not Vacuum Carpets Too Much

When we see small balls of fluff getting sucked into the vacuum cleaner every time we vacuum, we think that we are losing portions of our carpet. However, research has proved that vacuuming does not really destroy your carpet or make it thin and you can easily vacuum a carpet three to four times a week without losing it for a large number of years. Considering that an average carpet is vacuumed only three to four times a month, it is imperative that you increase the frequency of your vacuuming.

Professional Carpet Cleaning Shrinks Carpets

Gone are the days when carpets used to made out of shrinkable natural materials like pure wool and silk on a jute base. The majority of carpets today are made out of nylon tied on a synthetic base. Since almost all of us know that synthetics do not shrink even in hot water, there are absolutely no chances of your carpet shrinking or losing color due to steaming or hot water extraction. On the other hand, if you actually have a woolen or silk carpet, then hiring professionals for cleaning it is a better option since they will know what to use while cleaning it so that it loses neither color nor size.

Cleaning A Carpet Makes It Get Dirtier Fast

This actually happens to a lot of us. We notice that a carpet’s propensity for becoming dirty increases exponentially the moment it gets cleaned. Unfortunately this is not due to cleaning but because of ‘dirty’ cleaning, explains Carpet cleaning Charlotte NC. If your carpet does not get cleaned properly and remains of cleaning chemicals are left in it, then it is bound to attract more dust and grime than it was doing earlier.

Therefore, it is important that the carpet is cleaned properly and remains of chemicals totally removed. If this is done, your carpet will not pick up any more dirt than it was doing earlier. In fact, getting a Scotchgard coating will ensure that it remains neat and clean for a long time to come. The trick here is to hire a good professional carpet cleaning company that knows its job instead of trying to do it yourself or hiring cheap but incompetent people.