Sales per share is a simple ratio that calculates the total revenue earned per share over a designated period, typically quarterly, annually or most commonly a TTM (trailing 12 months metric)
The formula to use for this calculation is simple, take the yearly sales revenue and divide by the average shares outstanding for the designated time frame.
A higher ratio is preferable and this data can be interpreted as a company that has successfully used its resources to produce sales.
The sales-per-share ratio is more reliable/significant when coupled with other share value metrics like EPS (Earnings Per Share) to more effectively assess the profitability of a company.
