Just look into per-quantities and found the ff:
*EBITDA per share = EBITDA/ Weighted average number of shares outstanding
*Dividendsper share= Common dividends declared/ Weighted average number of ordinary shares outstanding
… and realized that there must be a difference in shares outstanding and ordinary shares outstanding.
U guys have any idea what it is? Pls. feel free to share
Ordinary shares refers to only common shares.
I thought of both as common shares… so what are shares outstanding?
Total shares outstading, which includes preferred shares.
I’m not confident that “total shares outstanding” has anything to do with preferred shares. I would ask that the OP provide more context so we can be more sure. What were the specific questions or examples that led to your inquiry?
What does OP stand for?
I just noticed the formula. I didn’t understand why it didn’t just weighted average number of share outstanding for Dividends per share formula.
*EBITDA per share = EBITDA/ Weighted average number of shares outstanding
*Dividendsper share= Common dividends declared/ Weighted average number of ordinary shares outstanding
OP means original poster. They were referring to you.
Thank you for providing an example. You’re putting too much thought into it. “Weighted average number of shares outstanding” AND “Weighted average number of ordinary shares outstanding” refer to the same thing. There is a difference between basic and diluted, which is explained in the material. However, regardless of whether basic or diluted number of shares outstanding is used, the final number is the total common shares outstanding.
As I mentioned in my previous response, you would not use preferred shares in either calculation.
Conclusion:
Weighted average number of shares outstanding= weighted average number of ordinary shares outstanding= weighted average number of common shares outstanding.
Thank you