EARNINGS PER SHARE
Basic earnings per common share ("Basic EPS") is computed by dividing net income by the number of weighted average common shares outstanding during the fiscal year. Diluted earnings per common share ("Diluted EPS") is calculated by using the treasury stock method which assumes the issuance of common stock for all potentially dilutive stock-based awards.
The following is a reconciliation of our Basic and Diluted EPS computations:
Years Ended August 31,
(in thousands, except per share data)202520242023
Numerator
Net income used for calculating Basic EPS and Diluted EPS$597,040 $537,126 $468,173 
Denominator
Weighted average common shares used in the calculation of Basic EPS37,924 38,059 38,194 
Common stock equivalents associated with stock-based compensation plans
461 559 704 
Shares used in the calculation of Diluted EPS38,385 38,618 38,898 
Basic EPS$15.74 $14.11 $12.26 
Diluted EPS$15.55 $13.91 $12.04 
The following table presents the potential common shares that were excluded from Diluted EPS as they relate to stock-based awards that were antidilutive or subject to performance conditions which have not been satisfied by the end of each fiscal year:
Years Ended August 31,
(in thousands)
202520242023
Stock options
791 381 566 
Restricted Stock Awards
87 88 59 

Historical Timeline

Fiscal YearFiled
2025Oct 22, 2025Showing above
2024Oct 29, 2024
2023Oct 27, 2023
2022Oct 21, 2022
2021Oct 22, 2021
2020Oct 29, 2020
2019Oct 30, 2019
2018Oct 30, 2018
2017Oct 30, 2017
2016Oct 31, 2016
2015Nov 2, 2015

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.