Earning Per Share

This rolling ratio of the S&P500 (the biggest companies in America) is like a scoreboard for big businesses in the United States.

It tells us how much profit each share of a company’s stock has earned. (total earnings divided by total number of shares).

When the number goes up, it usually means businesses are doing well. They’ll often use that extra money to grow, like hiring more people or investing in new projects, which is good for everyone.

On the other hand, if these earnings start to go down, it’s usually a red flag.

Companies might have to make some tough choices like laying off staff or cutting back on future plans.

Track this yourself

You can find this data on TradingView: https://www.tradingview.com/chart/v7ZG3yMA/?symbol=QUANDL%3AMULTPL%2FSP500_EARNINGS_MONTH