The earnings per share ratio facilitates the comparison of a company's profit over time with other companies' at a single point in time.

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The earnings per share ratio is a useful tool for comparing a company's profit over time and with other companies at a single point in time. It is calculated by dividing a company's net income by its total number of outstanding shares of common stock. This results in a figure that represents the amount of profit earned per share of stock. By using this ratio, investors can gain insight into a company's profitability and compare it to the earnings of other firms in the same industry.

The Earnings Per Share Ratio Facilitates the Comparison of a Company's