Here is how EPS can help in gauging a company's financial state and profitability: 1. EPS of different companies can be compared against each other while picking the most profitable investment option.2. It can help in comparing a company's financial standing over the years. Companies that have shown a steady rise in EPS can be considered reliable for investment. Companies that have irregular EPS are mostly not preferred by seasoned investors.3. A higher EPS indicates more profitability, which means likelihood of higher dividend payout over time.4. EPS helps in measuring a company's current financial standing and also in tracking its past performances.