priyanshu saxena (MBL LL.B.(Hons.) CS (Professional) with 4 yrs exp as Law editor in Thakur Publishers Pvt. Ltd.) (2653 Points)
03 October 2011cn any one explain what is EBIT – EPS analysis?
priyanshu saxena
(MBL LL.B.(Hons.) CS (Professional) with 4 yrs exp as Law editor in Thakur Publishers Pvt. Ltd.)
(2653 Points)
Replied 03 October 2011
EBIT-EPS
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 03 October 2011
Please refer the enclosed notes....
priyanshu saxena
(MBL LL.B.(Hons.) CS (Professional) with 4 yrs exp as Law editor in Thakur Publishers Pvt. Ltd.)
(2653 Points)
Replied 03 October 2011
thanx rajan............. but as a term in layman language what does it mean why it is used i wanna know its purpose
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 03 October 2011
The EBIT-EPS analysis, as a method to study the effect of leverage, essentially involves the comparison of alternative methods of financing under various assumptions of EBIT.
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 03 October 2011
EBIT-EPS Break-Even Analysis -- Analysis of the effect of financing alternatives on earnings per share. The break-even point is the EBIT level where EPS is the same for two (or more) alternatives.
* Krishna *
(CA Student)
(6149 Points)
Replied 03 October 2011
Refer below link for some clarity
https://campus.murraystate.edu/academic/faculty/lguin/FIN330/EBIT_EPS.htm
priyanshu saxena
(MBL LL.B.(Hons.) CS (Professional) with 4 yrs exp as Law editor in Thakur Publishers Pvt. Ltd.)
(2653 Points)
Replied 03 October 2011
okkkkk.... now i got it is just a technique to determine which option is better to choose for a company in order to raise its capital which will also increase its earning per share. isn't it????
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 03 October 2011
Yes exactly and also which option is less risk with higher EPS.
priyanshu saxena
(MBL LL.B.(Hons.) CS (Professional) with 4 yrs exp as Law editor in Thakur Publishers Pvt. Ltd.)
(2653 Points)
Replied 03 October 2011
thanx a ton.....will disturb u again shortly with more quries .................:)
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
