EPS Calculation – Convertible Debt – Excel Template

EPS Calculations - convertible debt

This is an Excel template illustrating how to calculate Earnings per Share (EPS) and Diluted Earnings per Share (DEPS) for a company with a complex capital structure. The calculation is very functional for companies that issue convertible bonds. These are debt securities that can be converted into a fixed number of common shares and have the “potential” to change the number of common shares outstanding in the future.

To calculate Basic EPS and Diluted EPS, we assume that all convertible bonds are converted into common stock. This is known as the “If-converted” method. It illustrates what happens if all the conversion rights are exercised.

You can use this model as a template to calculate EPS.

Other related topics you might be interested to explore are Diluted Earnings per Share, Profit and Loss Statement, and Capital structure.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as an Accountant, Financial Analyst, or Finance Manager.

You can now download the Excel template for free.

The EPS Calculation is included in the Financial Reporting module of the CFA Level 1 Curriculum.

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