Balance Sheet, Equity Flashcards
Common stock and APIC
+ $ value of new shares issued
+ Stock based compensation expense (SBC)
Common stock & APIC (EOP)
Common stock and APIC - $ value of new shares issued
Use equity research or management guidance when available. In the absence of guidance look at historical issuances (disclosed in the cash flow statement). If historical issuances are significant grow as a % of sales or straight-line depending on the historical trends observed. If historical trends are lumpy or undisclosed, assume no new purchases
Common stock and APIC - Stock based compensation expense (SBC)
SBC expense represents the $ value of SBC issued. It reduces retained earnings and increased common stock and APIC. Forcast using one of these two approaches:
1) Forecast SBC expense = (Historical SBC / Historical Revenue) * Forecast Revenue
2) Forecast SBC expense = (Historical SBC / Historical Op. Expense) * Forecast Op. Expense
Common stock and APIC - Common stock & APIC (EOP)
subtotal of + $ value of new shares issued and + Stock based compensation expense (SBC)
Treasury stock
-$ amount of repurchases Treasury stock (EOP)
Treasury stock - $ amount of repurchases
If management provides $ repurchases guidance, input this guidance and make a reasonable determination of whether this repurchase volume is sustainable beyond guidance period. If no guidance, use analyst research or straight-line historical result from the statement of shareholders’ equity
Treasury stock - treasury stock (EOP)
Subtotal of amount of repurchases
Retained earnings
+ Net income
-Common dividends
-Preferred dividends
Retained earnings (EOP)
Retained earnings - Net income
From model
Retained earnings - Common dividends
Forecast using the historical average dividend payout ratio (common dividends / net income)
Retained earnings - Preferred dividends
Straight-line historical preferred dividends
Retained earnings - Retained earnings (EOP)
Subtotal of + Net income, -Common dividends and -Preferred dividends
