SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Novell (NOVL) dirt cheap, good buy?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Elmo Gregory who wrote (24548)11/26/1998 11:49:00 AM
From: Exacctnt  Read Replies (2) of 42771
 
Elmo, The following calculation may explain where the 21M shares went.

Remember in the earnings per share calculation, shares are a year-to-date weighted average. At the end of the 3rd quarter there were 352M shares for the basic eps calculation. That's a weighted 352M shares. The 4 quarter year-to-date weighted average shares used is 346M shares. To calculate the three month 4th quarter shares, use the following calculation:

352*3 + x = 346
x = 328

So the shares used in the 4th quarter calculation was 328M shares which is 24M shares lower than the 9 month weighted average shares. The calculation is not exact because of other influences, but you get the general drift.

For the Diluted shares, options have a direct bearing on the calculation. I haven't found how many were granted or exercised in the current fiscal year, so calculating the affects is difficult.

Additional notes:
The companies basic eps calculation does not involve options conversions. It is a straight weighted average of shares outstanding.

The affect of options for diluted eps is more complicated than a straight add-on for options outstanding. To calculate the dilutive affect, you have to compensate for the cash received from the exercise , and the tax benefit gained from the exercise.

I hope this helps.

Regards,
Bob
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News