Revenue Per Share (RPS) is a financial metric measuring the revenue a company generates per outstanding share of its common stock. One calculates RPS by dividing a company's total revenue by the number of outstanding shares. This metric provides insights into how efficiently a company utilizes its shares to generate revenue. Investors can use Revenue Per Share as a tool to evaluate a company's ability to generate sales on a per-share basis. A higher RPS indicates more robust revenue generation relative to the number of shares, which is a positive sign for potential investors. However, it's essential to consider industry benchmarks and company-specific factors for a more accurate assessment.
