ACME UNITED CORP Earnings Per Share Disclosure
12. Earnings Per Share
The calculation of earnings per share is as follows:
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2024 |
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2023 |
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Numerator: |
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Net income |
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$ |
10,022,351 |
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$ |
17,793,160 |
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Denominator: |
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Denominator for basic earnings per share: |
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Weighted average shares outstanding |
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3,700,568 |
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3,572,144 |
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Effect of diluted employee stock options |
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397,981 |
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85,553 |
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Denominator for dilutive earnings per share |
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4,098,549 |
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3,657,697 |
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Basic earnings per share |
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$ |
2.71 |
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$ |
4.98 |
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Diluted earnings per share |
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$ |
2.45 |
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$ |
4.86 |
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For 2024 all outstanding options were included in the calculation of diluted shares. In 2023, 591,624 stock options were excluded from diluted earnings per share calculations because they would have been anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 6, 2025 | Showing above |
| 2019 | Mar 13, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.