Earnings Per Share

12 Months Ended

Dec. 31, 2019

Note 15. Earnings Per Share

MEDITECH follows the provisions of ASC 260-10, Earnings per Share, which requires reporting both basic and diluted earnings per share. MEDITECH has no common share equivalents such as preferred stock, warrants or stock options which would dilute earnings per share. Thus, earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the three years ended December 31. In general, the average number of shares reflects the annual issuance of shares sold to staff members in February pursuant to the 2004 Stock Purchase Plan and the annual issuance of shares contributed to the MEDITECH Profit Sharing Trust in December.

	2017	2018	2019

Net income	$77,428,576	$56,205,796	$180,157,193
Average number of shares	37,190,854	37,190,854	37,190,854
Earnings per share	$2.08	$1.51	$4.84