Basic Weighted Avg Shares
WeightedAverageNumberOfSharesOutstandingBasicWeightedAverageNumberOfShareOutstandingBasicAndDilutedBasic weighted average shares outstanding is the average number of common shares a company had outstanding during a reporting period, with each share counted in proportion to the fraction of the period it was actually outstanding. It is the denominator of basic earnings per share.
Weighting by time keeps earnings per share fair when the share count changes mid-period. Shares issued halfway through a year count as half a share for that year, and shares repurchased and retired stop counting from the date they were bought back.
The calculation is set by ASC 260, Earnings Per Share, and the figure is tagged in XBRL as WeightedAverageNumberOfSharesOutstandingBasic. Regulation S-X Rule 5-03.25 calls for earnings per share data on the face of the income statement, and the share counts behind it are disclosed with it. Companies whose basic and diluted counts are identical, often because they have no dilutive securities or reported a loss, may tag a single value as WeightedAverageNumberOfShareOutstandingBasicAndDiluted.
The basic count includes only shares actually outstanding. Stock options, warrants, unvested restricted stock, and convertible securities are left out until they turn into shares, although shares issuable for little or no further consideration are included once all conditions are met. Stock splits and stock dividends are handled differently from issuances: they are applied retroactively to every period presented, so a two-for-one split doubles the share count for prior years as well and keeps per-share history comparable.
Because it is an average, this number usually differs from the shares outstanding shown on the cover of a 10-K or 10-Q, which is a count on a single date. For valuation work such as market capitalization, analysts use the most recent point-in-time count. For per-share earnings over a period, the weighted average is the right match, because income was earned across the whole period.
A: Shares outstanding is a snapshot on one date. The weighted average spreads share changes across the period, so buybacks or issuances late in the year move it less than they move the period-end count.
A: No. Options, warrants, and convertibles are excluded from the basic count. Their potential effect is captured in the diluted weighted average share count instead.
A: Splits are applied retroactively. Every period shown in the filing is restated as if the split had always been in effect, so per-share figures remain comparable over time.
GeminIQ turns SEC EDGAR filings into interactive fundamental analysis. Explore the financial ratios and metrics library, the SEC filings glossary, or start screening every US public company.
Start 7-Day Free Trial →