What components make up the earnings in the earnings per share calculation?

The calculation of earnings per share (EPS) focuses specifically on the profit or loss attributable to ordinary equity holders. This represents the earnings that can be distributed to those shareholders after accounting for all expenses, taxes, and preferred dividends. Therefore, when calculating EPS, the primary component included is the profit or loss for the period attributable to ordinary equity holders.

This figure reflects the net income of the company available to common shareholders after all relevant deductions, aligning perfectly with the definition of EPS as it provides investors with a clear insight into the profitability per share that they own. Understanding this distinction is crucial for assessing the performance and value of a company from an equity holder's perspective.

The other options represent different aspects of a company's financial performance but do not directly correspond to the calculation of EPS. For instance, total revenues reflect the overall income before subtracting expenses, net income before taxes does not provide the full picture as it omits tax obligations, and operating income only focuses on revenue generated from core business operations without accounting for all necessary costs.