treasury stock method

简明释义

库存股票法

英英释义

例句

1.Investors should understand how the treasury stock method affects their shares when new options are exercised.

投资者应该理解当新期权被行使时，库藏股票法如何影响他们的股份。

2.During the financial analysis, the accountant explained the treasury stock method for better clarity.

在财务分析中，会计解释了库藏股票法以便于更好的理解。

3.The treasury stock method is essential for calculating potential dilution from employee stock options.

对于计算员工股票期权可能造成的稀释，库藏股票法是必不可少的。

4.The company used the treasury stock method to calculate its diluted earnings per share.

公司使用库藏股票法来计算其稀释每股收益。

5.Our valuation report included a section on the treasury stock method to assess share dilution.

我们的估值报告中包括了一部分关于库藏股票法的内容，以评估股份稀释。

作文

The concept of the treasury stock method is essential in understanding how companies manage their equity and calculate earnings per share (EPS). This accounting method is particularly relevant when a company has outstanding stock options or convertible securities. The treasury stock method provides a way to assess the potential dilution of earnings that could occur if these options or securities were exercised. By using this method, companies can present a more accurate picture of their financial health to investors.When a company issues stock options to its employees, it grants them the right to purchase shares at a predetermined price. If the market price of the stock rises above this exercise price, the employees are likely to exercise their options. This scenario increases the number of shares outstanding, which can dilute the earnings per share. The treasury stock method helps to account for this potential dilution by assuming that the proceeds from the exercise of options are used to repurchase shares in the market.To illustrate how the treasury stock method works, consider a hypothetical company, XYZ Corp. Suppose XYZ Corp has 1 million shares outstanding and has granted options to employees to purchase an additional 100,000 shares at $10 each. If the current market price of XYZ’s stock is $20, employees will likely exercise their options. Under the treasury stock method, we first calculate the total proceeds from the exercised options, which would be 100,000 shares multiplied by the exercise price of $10, resulting in $1 million.Next, we assume that this $1 million is used to buy back shares at the current market price of $20. Therefore, XYZ Corp can repurchase 50,000 shares ($1 million divided by $20). After exercising the options, the total shares outstanding would be 1 million original shares plus 100,000 new shares from the options, minus the 50,000 shares repurchased, resulting in a total of 1.15 million shares.Now, let’s assume XYZ Corp reported net income of $2 million. To calculate the diluted EPS, we divide the net income by the adjusted number of shares outstanding: $2 million divided by 1.15 million shares, yielding a diluted EPS of approximately $1.74. Without considering the treasury stock method, if we simply calculated EPS based on the original shares, the EPS would have been $2 ($2 million divided by 1 million shares), which does not reflect the potential dilution from the stock options.In conclusion, the treasury stock method is a critical tool for accurately assessing a company’s diluted earnings per share. It provides investors with a clearer understanding of how stock options and convertible securities can impact their investment. By incorporating the treasury stock method into financial reporting, companies enhance transparency and allow stakeholders to make more informed decisions regarding their investments. Understanding this method is vital for both corporate finance professionals and investors alike, as it underscores the importance of considering potential dilution when evaluating a company's financial performance.

“库存股票法”这一概念对于理解公司如何管理其股本以及计算每股收益（EPS）至关重要。这种会计方法在公司拥有未偿还的股票期权或可转换证券时尤其相关。“库存股票法”提供了一种评估如果这些期权或证券被行使，可能发生的收益稀释的方式。通过使用这种方法，公司能够向投资者呈现更准确的财务健康状况。当一家公司向员工发行股票期权时，它授予员工以预定价格购买股份的权利。如果股票的市场价格高于这一行使价格，员工很可能会行使他们的期权。这种情况增加了流通股数量，从而可能稀释每股收益。“库存股票法”通过假设行使期权的所得用于在市场上回购股票来帮助考虑这种潜在的稀释。为了说明“库存股票法”的运作方式，考虑一个假设的公司XYZ公司。假设XYZ公司有100万股流通在外，并已授予员工购买额外10万股的期权，行使价格为每股10美元。如果XYZ公司的当前市场价格为20美元，员工很可能会行使他们的期权。根据“库存股票法”，我们首先计算行使期权的总收入，这将是10万股乘以10美元的行使价格，总计100万美元。接下来，我们假设这100万美元用于以当前市场价格20美元回购股份。因此，XYZ公司可以回购5万股（100万美元除以20美元）。在行使期权后，流通在外的总股数将是100万原始股份加上来自期权的10万新股，减去回购的5万股，总共为115万股。现在，假设XYZ公司报告的净收入为200万美元。要计算稀释后的每股收益，我们将净收入除以调整后的流通股数：200万美元除以115万股，得出每股收益约为1.74美元。如果不考虑“库存股票法”，如果我们仅基于原始股份计算每股收益，每股收益将为2美元（200万美元除以100万股），这并未反映期权带来的潜在稀释。总之，“库存股票法”是准确评估公司稀释每股收益的重要工具。它为投资者提供了更清晰的了解，说明股票期权和可转换证券如何影响他们的投资。通过将“库存股票法”纳入财务报告，公司增强了透明度，使利益相关者能够对其投资做出更明智的决策。理解这一方法对于企业财务专业人士和投资者而言都是至关重要的，因为它强调了在评估公司财务表现时考虑潜在稀释的重要性。