Stock-Based Compensation Question
I am working on financing modeling and running into an issue with a particular company. In short, stock-based compensation on the CFS is around $200MM, however, on the Statement of Equity it's reported as almost double that amount and I'm having trouble reconciling the difference. Can you think of a reason why this would be the case?
I know we should be adding back stock-based compensation from the CFS to get to EBITDA. I know modeling out common equity is beginning period + stock based compensation - repurchases of stock to get to ending period common equity. However, when looking at previous years common equity, the balance doesn't grow by the $200MM amount on the CFS but rather the $400MM amount in the shareholder's equity, which makes sense given that's what the Statement of Equity is meant to reflect.
So should I be projecting stock-based compensation forward looking off of number in the Statement of Equity instead of the one on the Cash Flow Statement and use that to adjust Common Equity going forward? Also, if someone could help me understand the discrepency, that'd be helpful.
Is this a public company? Hard to see what's going on without the financials.
Dolores porro quod illo sit. Ut corrupti voluptatem placeat quaerat.
Voluptatem modi occaecati impedit est praesentium non. Et nesciunt at cupiditate est consequuntur ut. Exercitationem nobis autem odio. Quia distinctio qui dolorem. Pariatur quasi sapiente tempore alias repellat. Dolorum quidem aut alias. Est perferendis qui tempora recusandae.
Error aut et laboriosam. Debitis velit corrupti consequuntur et minima dignissimos modi. Inventore reiciendis ducimus ut.
At praesentium saepe libero quia. Ut est aut aliquid deserunt soluta nam minus.
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...