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AppleNVIDIABerkshireMetrics guide
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AppleNVIDIABerkshire
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Metrics guide›Financial statement lines

Stock-based compensation

Reported share-based compensation expense added back in the cash-flow reconciliation.

Worked example · a round-number company

Stock-based compensation$1.0B÷Revenue$5.0B=Share of revenue20.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%

How to read it

↕Neither higher nor lower is better. Shows a noncash cost that can dilute owners.

Keep in mind

  • Adding it back improves operating cash flow without eliminating the economic cost of issued shares.