If Company A had earnings per share of $4 and Company B had earnings per share of $3,then it is accurate to conclude that Company A was more profitable.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is a measure of a company's profitability on a per-share basis, not its total profitability. A company with a higher EPS can have lower total earnings if it has fewer shares outstanding than another company. Profitability is better assessed through net income or other comprehensive profitability measures.

If Company a Had Earnings Per Share of $4 and Company