Diluted earnings per share convertible preferred stock
What is diluted earnings per share (Diluted EPS)? Diluted earnings per share is a metric that helps analysts and investors estimate the quality of a company’s basic earnings per share (EPS). The diluted EPS does this with a calculation that assumes all of a company’s convertible securities have been exercised. Basic earnings per share is sufficient if all you have is a simple capital structure, but once you get into having things such as options, stock options, warrants, convertible preferred shares, convertible debt, or other complex financial instruments that are classified in equity, you're going to need to calculate a diluted earnings per share