Warrants and convertibles, % of shares outstanding (Potential dilution)
The shares the warrants the company tags would add, plus the shares its convertible notes turn into where it tags them, as a percentage of the shares outstanding filed as of the same date.
Warrants and convertibles are shares that do not exist yet. When they are exercised or converted, every holder owns less of the same business.
How it is computed here
(Warrant shares + conversion shares) / shares outstanding on the same date x 100
Measured against the most recent quarterly balance sheet. As of the newest balance-sheet date the company tagged its warrants or convertibles at, in a 10-K, 10-Q, 20-F or the 6-K a foreign issuer files its interim figures on. Filed under risk. Lower is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Counts company-wide figures the filer tags in its XBRL facts and nothing else. Warrants tagged only class by class, or described only in the notes, are not counted, and a company that tags none reads not filed, never 0%.
- Where convertible debt is on file and the shares it turns into are not tagged, the figure is a floor and says so. A rule is tested on a floor only where the floor alone already breaks it.
- A count more than ten times the shares outstanding on the same date is shown as filed and not divided: that is more often a scale slip in the tagging than a real overhang.
Questions
How is warrants and convertibles, % of shares outstanding calculated?
(Warrant shares + conversion shares) / shares outstanding on the same date x 100. Measured against the most recent quarterly balance sheet. As of the newest balance-sheet date the company tagged its warrants or convertibles at, in a 10-K, 10-Q, 20-F or the 6-K a foreign issuer files its interim figures on.
What does warrants and convertibles, % of shares outstanding tell a value investor?
Warrants and convertibles are shares that do not exist yet. When they are exercised or converted, every holder owns less of the same business.
When does warrants and convertibles, % of shares outstanding mislead?
Counts company-wide figures the filer tags in its XBRL facts and nothing else. Warrants tagged only class by class, or described only in the notes, are not counted, and a company that tags none reads not filed, never 0%. Where convertible debt is on file and the shares it turns into are not tagged, the figure is a floor and says so. A rule is tested on a floor only where the floor alone already breaks it. A count more than ten times the shares outstanding on the same date is shown as filed and not divided: that is more often a scale slip in the tagging than a real overhang.