Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 2008?

In 2008, the earnings per share of Pizza A was $2.00. Calculate this by taking the profit after tax for the year (600,000 dollars) and multiplying it by 300,000 shares. This results in an EPS value of $2.00, which is a good financial return relative to capital invested.

The diluted earnings per share (EPS) figure for 2009 was 1.84, as shown in the following illustration.

Total Earnings After Taxes / Total Number Of Shares Outstanding = Diluted EPS
$750,000 / 325,000 = $1.84.

This figure does not reflect any non-recurring expenses, gains or other items that may have happened during this time period. These could have an impact on future profitability.