By dividing the net income by the total number of outstanding shares, one can determine the earnings per share, or EPS. Investors frequently use this ratio to analyze the profitability of businesses in the same industry since it gives them insight into a company's profitability on a per-share basis. For instance, the EPS would be computed as follows if Coca-Cola's net income for 2023 is $10 billion and the company has 4.3 billion outstanding shares: Net Income / Total Outstanding Shares equals EPS. $10 billion / 4.3 billion is the EPS. $2.33 is the EPS. This indicates that in 2023, the corporation made $2.33 for each share of Coca-Cola stock. This is a simplified example; actual calculations may need to account for variations in the total number of outstanding shares throughout the course of the year.