3. EARNINGS PER SHARE:

Basic earnings per share available to common shareholders is calculated by dividing net income by the weighted average number of common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations by the sum of the weighted average number of common shares outstanding and the weighted average dilutive equity awards.

For Fiscal Years

2025

    

2024

    

Basic

Basic

Weighted average number of common shares outstanding

 

613,188

 

599,020

Net income available to common shareholders

$

568,739

$

4,336,489

Net earnings per share available to common shareholders

$

0.93

$

7.24

For Fiscal Years

2025

    

2024

    

Diluted

Diluted

Weighted average number of common shares outstanding

 

613,188

 

599,020

Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1)

 

3,298

 

7,762

Weighted average number of shares outstanding

 

616,486

 

606,782

Net income available to common shareholders

$

568,739

$

4,336,489

Net earnings per share available to common shareholders

$

0.92

$

7.15

(1)Diluted earnings per share calculation includes all equity-based awards deemed to be dilutive.

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.