PDF HTML FlashPaper

Per Share

Stock Investor Pro provides quarterly and annual financial statement data for select financial statement items. In addition to total and percentage change figures that are provided for quarterly financial statement data, Stock Investor Pro includes per share amounts and common size financial statements.

Financial Statements - Annual

Stock Investor Pro includes select income statement, balance sheet and cash flow statement data for the past seven years annually.

The Fin - Ann’l tab gives you the option of looking at the data on a total dollar basis as well as on a per share basis, a percentage change year-to-year basis and common-size financials basis.

Since share prices are presented on a per share basis, it is useful to analyze a company’s financial statements in a similar manner. The calculation is made by taking a financial statement line item, such as sales, and dividing it by the average number of shares outstanding for the same period. Per share analysis allows you to equate the price of a common share of stock to a tangible element of a company such as earnings, sales or cash. By issuing or repurchasing shares of stock, companies can influence the existing value of the stock. Typically, when a company announces that it will issue additional stock, the price of existing shares reflects, among other things, the dilution the new shares will create. A larger number of shares will be divided against the same level of current earnings or company assets. Conversely, when a company announces a share repurchase initiative, stock prices tend to rise, all else equal. This is because a smaller number of shares will be divided against the company’s earnings. In essence, shareholders are gaining a larger piece of the pie. These are general rules of thumb. Ultimately, the long-term effect of these initiatives depends on how effectively the company utilizes the funds generated by a secondary stock offering, or what opportunities were lost by repurchasing shares instead of investing in future endeavors.

Here is the Financial Statements - Annual (Per Share) tab for Johnson & Johnson (JNJ):

Financials_Annual_PerShare_I.gif

Back to Stock Notebook