Weighted average basic shares
Average common shares outstanding during the reporting period.
Worked example · a round-number company
This period200M÷A year before205M− 1 =Change−2.4%How to read it
↕Neither higher nor lower is better. Helps explain changes in basic per-share earnings.
Keep in mind
- An average is not additive and differs from shares at period end; stock splits change its basis.