Cash flow statement
Stock-Based Compensation
Shows share-based payment expense added back in operating cash flow because it does not consume immediate cash. Economically it can dilute shareholders if not offset by efficient buybacks.
Stock-Based Compensation
stockBasedCompensation · Cash flow statement
- Definition
- Shows share-based payment expense added back in operating cash flow because it does not consume immediate cash. Economically it can dilute shareholders if not offset by efficient buybacks.
- Calculation
- Valor razonable de pagos basados en shares reconocido como expense y anadido de vuelta en CFO.
- Uses
- Useful for separating accounting profit from real cash generation and tracking reinvestment, acquisitions, debt, dividends and buybacks. Especially important in mature businesses, cyclicals, roll-ups and high-capex companies. It can mislead through working-capital timing, irregular capex, refinancing or M&A. Cross-check net income, EBITDA, maintenance capex and net debt.
