Financial Statements
Diluted EPS
Earnings per share calculated using a larger share count that includes potential dilution.
Also called: diluted earnings per share
What it means
Diluted EPS adjusts the share count to include securities that could become common shares, such as options, warrants, or convertible debt. This often makes per-share earnings look lower than basic EPS.
Why it matters
It gives users a more conservative view of per-share profitability when dilution is possible.