Outstanding Shares Overview & Where to Find Them

Therefore, the total number of shares outstanding for KLX Inc. at the end of the year 2018 is 3.8 million. A publicly-traded company can directly influence how many shares it has outstanding. Shares outstanding are the basis of several key financial metrics and can be useful for tracking a company’s operating performance. The number of shares outstanding of a company can be found in its quarterly or annual filings (10-Qs or 10-Ks). The options used to compute FDSO are those that are exercisable, rather than those outstanding. However, we have also included options outstanding in our table as these options would be required for modeling an acquisition or LBO of the company.

• For example, let’s say you want to calculate the weighted average number of outstanding shares for a company over two reporting periods of 6 months each.
• It comes up with a set number of shares to divide the company into and can sell those shares as it sees fit.
• An increase in the number of shares outstanding boosts liquidity but increases dilution.
• In some nations such as the United States, these figures are accessible from the Securities and Exchange Commission (SEC) quarterly filings.

Also, look at the line item for treasury stock which is making reference to the shares that have been bought back from investors by the issuing company. If the corporation has never bought back shares from investors, then there will be no line item for treasury stock. If the line is in existence, then there should be a descriptive statement within the line stating the number of shares that have been repurchased from investors. If others have invested in your company through a convertible promissory note or a SAFE, the shares attributable to those instruments are not considered issued until they are converted or exercised. Stock warrants, like stock options and SIP grants, fall under a similar category – they are not included in the calculation until exercised. Different scenarios for calculating the weighted average of outstanding shares are shown in the following examples.

Look at the Preferred Stock Line Item

Preferred stock’s subdivisions are usually based on the various purchase prices, protective provisions, and other rights granted to the preferred stockholders. It’s important to note that outstanding shares do not include treasury stock, which are shares that were once owned by investors that a corporation has repurchased. They also do not include preferred shares, which are stocks that do not carry shareholder voting rights, but do give their owners some ownership rights and pay a fixed dividend.

It also raises the company’s earnings per share figure (EPS) since earnings are divided by a smaller number of shares. A share repurchase generates a higher income per share, making each share more valuable. When companies consider their stocks to be undervalued, they often initiate a share repurchase program, buying back some of their issued shares at a favorable price. Recognizing that a company’s number of shares outstanding can change is also useful.

Related stock market topics

An asset’s book value is calculated by subtracting depreciation from the purchase value of an asset. Depreciation is generally an estimate, and there are various methods for calculating depreciation. bookkeeping for startups To better understand book value per share, it helps to break down each aspect of the ratio. Group 1 consists of 200,000 split shares that were effectively outstanding for the entire year.

• The number of shares outstanding is also significant to know because a firm could choose to issue more stock if it has authorized more shares than it currently has outstanding.
• To understand the calculation of outstanding shares, let us take an example of a company that has recently issued 1000 shares.
• The shares can be grouped according to the length of time that they were outstanding.
• They are not included in the balance and increasing them will always bring about decreases and vice-versa.