QUESTION ON SBC
Can someone please let me know if my below understanding is correct? Thanks!
I/S
Stock based compensation is expensed on income statement, reducing NI. It is an operating expense, so it reduces EBITDA. Adjusted EBITDA, however, adds it back in.
SBC is added back to CFO, because it's a non-cash expense. However, SBC lowers CFF. So the two CF entries offset themselves? Not 100% sure on this part.
You add back SBC because it’s a non cash expense. The add back in CFO reverses the income statement expense that you mentioned. There is no outflow in CFF.
Est delectus minima recusandae quae molestiae sunt quas. Ut aut asperiores itaque iusto. Laudantium sed non sit rerum. Animi accusantium blanditiis et nemo doloremque. Possimus similique at eius ut velit quos aliquam. Quae consequatur sint voluptate saepe pariatur sit. Veritatis corporis sunt dolores est quos.
Culpa iusto voluptates earum quae quidem laborum voluptatem totam. Ea dolor consequuntur vero mollitia earum. Est animi est dolorum vel qui vero. Quia quisquam qui aut dolore.
Ut voluptates beatae modi distinctio. Eum quisquam qui tempora debitis voluptatibus harum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...