Automated Weighted Average Shares Outstanding

Description
Weighted Average Shares Outstanding is a crucial financial metric used by investors, analysts, and company management to assess a company's financial health and performance. This metric calculates the average number of shares outstanding during a specific period, taking into account any fluctuations in the number of shares outstanding throughout that period.

The "weighted" aspect of this metric means that it assigns more significance to periods with higher shares outstanding. This is particularly important because companies may issue additional shares or buy back existing shares during the year, which can significantly impact the overall number of shares outstanding.
The primary purpose of calculating Weighted Average Shares Outstanding is to determine Earnings Per Share (EPS). EPS is a key indicator of a company's profitability on a per-share basis. By dividing the net income attributable to common shareholders by the weighted average shares outstanding, investors can understand how much profit the company is generating for each outstanding share.

Using Weighted Average Shares Outstanding provides a more accurate and meaningful representation of a company's profitability per share compared to simply using the total number of shares outstanding at the end of the period. It reflects the dynamic changes in the company's capital structure throughout the year, offering insights into its financial performance and potential future prospects.