Revenue per share is a financial ratio that measures a company's revenue generated per outstanding share of its common stock. It is calculated by dividing a company's total revenue by the number of shares outstanding.
The formula for calculating revenue per share is:
Revenue per share = Total revenue / Number of shares outstanding
Company has total revenue of $10 million and has 1 million shares outstanding. To calculate the revenue per share, we would divide the total revenue by the number of shares outstanding:
Revenue per share = $10,000,000 / 1,000,000 = $10
This means that the company generated $10 in revenue for every outstanding share of its common stock.