The income per common share can be known as Earning Per Share. An expected amount that shareholders could get on any share held by them is Earning Per Share. It helps to determine the market price of the equity share of a company and also helps in estimation of the company’s capacity to pay dividend to Equity Shareholders.
Net profit after tax available to equity shareholders
EPS = Number of equity shares outstanding
Table No.10: Calculation of EPS
| Year | NPAT | No. of Common Share Outstanding | EPS |
| 2061/62 | 57,386,634 | 431,865,600 | 13.29% |
| 2062/63 | 117,001,973 | 640,236,100 | 18.27% |
| 2063/64 | 254,908,844 | 647,798,400 | 39.35% |
| 2064/65 | 247,770,758 | 874,527,840 | 28.33% |
| 2065/66 | 316,373,495 | 874,528,000 | 36.18% |
| Average Ratio | 27.08% | ||
Source: Annual Report, Nepal SBI Bank Ltd
Bar Diagram 2: Earning Per Share
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