11. EARNINGS PER SHARE
 
Basic earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding plus common stock equivalents during each period.
 
The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net earnings per common share as disclosed in our consolidated statements of operations for the fiscal years ended March 31, 2025, 2024 and 2023 (in thousands, except per share data):
 
                    
  2025   2024   2023
Net earnings attributable to common shareholders – basic and diluted
$ 107,978    $ 115,776    $ 119,356 
                    
Basic and diluted common shares outstanding:
                  
Weighted average common shares outstanding – basic
  26,503      26,610      26,569 
Effect of dilutive shares
  163      107      85 
Weighted average shares common outstanding – diluted
  26,666      26,717      26,654 
                    
Earnings per common share – basic
$ 4.07    $ 4.35    $ 4.49 
Earnings per common share – diluted
$ 4.05    $ 4.33    $ 4.48 

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.