What is Revenue Per Share?
Revenue per share is a financial ratio that describes the ratio of a company’s net sales to outstanding shares.
How to Calculate Revenue Per Share
Revenue per share is calculated by dividing net sales by weighted-average common shares outstanding.
Net sales are found on the income statement, and weighted-average common shares outstanding are usually on a consolidated statement of operations, or the balance sheet in the equity section.
How to Interpret Revenue Per Share
In general, investors want to see increasing revenue per share over time, since increasing revenues are required for a company to sustainably increase earnings over time.