What is the significance of the earnings per share (EPS) figure?

The earnings per share (EPS) figure is significant because it reveals how much profit is attributable to each share of the company's common stock. This metric provides insight into a company’s profitability on a per-share basis, making it easier for investors to assess the company's financial performance relative to its number of shares outstanding.

EPS is a key component in various financial analyses, including the assessment of a company’s profitability over time and comparisons with other companies in the same industry. A higher EPS often indicates better profitability and is attractive to investors, as it suggests that the company is generating more profit for each share they hold. This figure can also influence stock prices, as investors typically are inclined to pay more for shares when a company shows strong EPS growth.

While other figures like revenues and total assets are important for understanding a company's overall financial health, they do not directly relate to the profitability delivered to shareholders on a per-share basis in the same way that EPS does.