CFA Level 1 | FRA: Basic and Diluted Earnings Per Share (EPS)

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CFA Level 1
Topic: Financial Reporting & Analysis
Reading: Understanding Income Statements
In this video, I illustrate 1 case of calculating basic EPS and 4 cases of calculating diluted EPS. Watch out for the adjustments in the diluted EPS for each security!
00:00 Basic EPS
02:13 Diluted EPS - Convertible Preferred Shares
05:22 Diluted EPS - Convertible Debt
09:00 Why add back after-tax interest on convertible debt?
11:30 Antidilutive securities
13:45 Diluted EPS - Stock Options/Warrants
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Пікірлер: 16

  • @purpleblush7106
    @purpleblush71066 ай бұрын

    seriously Fabian, your videos are god send. my sincere thanks to you.

  • @cekirdekci32
    @cekirdekci323 жыл бұрын

    omg. you really saved my life with this . i ve been studing on this and was not able to understand. thank you do much I appreciate it . and following you:)

  • @FabianMoa

    @FabianMoa

    3 жыл бұрын

    I'm so glad! A lot more videos on Level 2 and 3

  • @chatoyer8771
    @chatoyer87713 жыл бұрын

    Thanks Fabian - really well explained!

  • @FabianMoa

    @FabianMoa

    3 жыл бұрын

    Glad it was helpful!

  • @t_grumpynoodle
    @t_grumpynoodle2 жыл бұрын

    Excellent Video.

  • @yannafranco779
    @yannafranco7792 жыл бұрын

    Thank you x

  • @wangsarah8288
    @wangsarah82882 жыл бұрын

    Life saving video, wondering if you have a whole series for CFA 1

  • @FabianMoa

    @FabianMoa

    2 жыл бұрын

    You can check out the playlist on my channel. I don't have the whole series, just selected snippets

  • @breathetoprosper
    @breathetoprosper3 жыл бұрын

    great vid

  • @FabianMoa

    @FabianMoa

    3 жыл бұрын

    Thanks!

  • @zhideliang
    @zhideliang3 жыл бұрын

    To test whether the preferred share is anti-dilutive, is it ok to use : “preferred dividend / increased share due to conversion “, and compare the result with Basic EPS? Thanks

  • @FabianMoa

    @FabianMoa

    3 жыл бұрын

    Nope

  • @Matti_us_Alpe
    @Matti_us_Alpe Жыл бұрын

    Fabian, would you have any hint how to manage this type of task given the 90 seconds?

  • @FabianMoa

    @FabianMoa

    Жыл бұрын

    I would say repetitive practise on the same type of question shortens the required time. On the other hand, 90 seconds is just an average time. Conceptual-based questions normally take less than 90 seconds to answer, so you should be able to spend more than 90 seconds on calculation-based questions

  • @Matti_us_Alpe

    @Matti_us_Alpe

    Жыл бұрын

    @@FabianMoa Thank you Fabian.