Earnings per share (EPS)data are prominent in corporate annual reports,but EPS suffers as a financial performance measure because EPS ignores the amount of

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EPS only considers the profits earned by a company, and does not take into account the amount of capital required to generate those earnings. This means that a company may have a high EPS, but if the earnings were generated with a high amount of capital investment, then the return on investment may not be as impressive. Therefore, EPS should be used in conjunction with other financial performance measures to provide a more complete picture of a company's financial health.

Earnings Per Share (EPS)data Are Prominent in Corporate Annual Reports,but