Why earnings per share doesn't tell the full story
This metric is interesting in that it tells you how much money is being generated from invested capital in the business. A company like Apple is extraordinary in that this number is roughly 40%, meaning that cash flow is great and they're able to reinvest in the business and get something for it.
Earnings per share is deceptive in that your EPS can grow each year but the reinvested funds aren't generating more returns.
Submitted September 19, 2021 at 09:44AM by cheekygorilla https://ift.tt/3zmXGbc
