# Rolling EPS Definition.

The rolling EPS definition is the earnings per share for a company over a rolling period of time. The rolling period is typically four quarters, but can be any length of time. The rolling EPS is a measure of a company's earnings power over time.

The rolling EPS is calculated by taking the earnings per share for each quarter in the rolling period and dividing by the number of quarters in the period. For example, if a company has earnings per share of \$1.00 in each of the four quarters in a rolling period, the rolling EPS would be \$1.00.

The rolling EPS can be used to compare a company's earnings power over time. For example, if a company's rolling EPS increases from one period to the next, it indicates that the company is becoming more profitable.

### What does a decrease in EPS mean?

A decrease in earnings per share (EPS) means that a company's profits have decreased on a per-share basis. This can be due to a number of factors, such as declining sales, higher costs, or a combination of both. A decrease in EPS can be a red flag for investors, as it may indicate that a company is struggling to generate profits.

### Why is the trailing twelve months important?

The trailing twelve months (TTM) is the most recent twelve-month period for which complete financial statements are available. The TTM is important because it provides a more accurate picture of a company's recent performance than a single month or quarter.

Financial ratios are often calculated using the TTM to get a more accurate picture of a company's financial health. For example, the TTM revenue of a company is a better measure of its recent sales than its revenue for a single quarter.

The TTM is also important for compare companies of different sizes. A large company may have more revenue than a smaller company, but if the large company's revenue has been declining while the smaller company's revenue has been increasing, the smaller company may be in a better position.

##### What is the difference between PE ratio and EPS?

The price-to-earnings (P/E) ratio is a measure of the market value of a company's shares relative to the company's earnings. The earnings per share (EPS) is a measure of the company's earnings available to common shareholders.

The P/E ratio is calculated by dividing the market value per share by the EPS. For example, if a company's shares are trading at \$30 per share and the EPS is \$2, the P/E ratio would be 15.

The EPS is calculated by dividing the company's net income by the number of shares outstanding. For example, if a company has net income of \$100 and there are 10 million shares outstanding, the EPS would be \$0.10.

The P/E ratio is a more comprehensive measure of a company's share price relative to its earnings, as it takes into account the number of shares outstanding. The EPS is a more accurate measure of a company's actual earnings per share.

What does a negative EPS mean? A negative EPS indicates that a company is not generating enough revenue to cover its expenses. This can be due to a variety of factors, including poor management, high expenses, or a decline in demand for the company's products or services. If a company consistently has negative EPS, it may be in danger of bankruptcy.

##### What does EPS next 5 years mean?

EPS is defined as earnings per share, and is a key metric in assessing the profitability of a company. The "next 5 years" EPS figure refers to the earnings per share that the company is expected to generate over the next 5 years. This figure is generally based on analyst estimates and can be found in most financial reports.

When analysts or investors refer to a company's EPS "next 5 years", they are typically referring to the company's long-term earnings potential. This figure is important in assessing the company's future profitability and growth potential. EPS is also a key metric in determining a company's share price, as it is directly related to the company's earnings.

If you are interested in investing in a company, it is important to look at the company's EPS next 5 years figure in order to get an idea of its long-term earnings potential.