Earnings Per Share (EPS) is a crucial element in a company’s profit. Calculated by dividing net income by the number of common shares outstanding. Basically, Earnings Per Share shows how much money each shareholder made for each of her shares. In reality, this money doesn’t get paid back to the shareholder. Instead, most is reinvested in future operations of the company. The net income or loss is added to the retained earnings number on the balance sheet.