Question

You need to discuss and compare the percentage change of the EPS (basic and diluted) of the company with:

-the percentage change in the EPS (basic and diluted) of the company in the last year

-the percentage change in the EPS (basic and diluted) of the company over the past 3 years by providing a trend or other analysis

	2019	2018	2017	2016	2015
Basic EPS	1.47	1.45	1.78	1.53	1.15
Diluted EPS	1.46	1.44	1.76	1.51	1.14

Answer 1

Basic EPS will be calculated as Net income divided by the weghted average of shares outstanding.

Diluted EPS takes count of the probable shares that comes outstanding like if there are any convertable bonds with conversion to equity, Diluted EPS considers these converted shares for calcluation of EPS.

That's the major difference between diluted EPS and basic EPS.

Company's EPS has improved marginally in 2019 from 2018, but deteriorated when compared to 2016 and 2017 levels. This could be because of two reasons: 1) The net profit might have declined 2)There might be additional shares that have been issued by the company.