#Revenue per share
Revenue per share shows the company's sales per share.
Revenue per share = Revenue / Number of Shares
Revenue is the total sales of the goods and services a company offers. Revenue is also called total revenue.
Revenue is an important figure for you as an investor.
Revenue shows whether the company is growing or in decline. Rising turnover is positive as it shows that the company is increasing its sales, which can, in turn, lead to increased profits.
Things to keep in mind
- Revenue per share is a useful figure that indicates whether the company is experiencing growth.
- The next step is usually to compare against the share price, which gives you the key figure P/S.
- Pay attention to whether the company is increasing the number of share, as this would lead to a decreased revenue per share.