fintech-algorithms
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Basic and Diluted EPS

3 algorithms in Earnings and Per-Share Analytics.

In this family#

  1. If-Converted Convertible-Preference Dilution contract

    The if-converted method for convertible preference shares: assume conversion, add the shares, add back the preference dividend. Conversion is only included when it is **dilutive** — an anti-dilutive instrument is excluded, and including it overstates EPS.

    calculateConvertiblePreferenceDilution(input)
  2. Treasury-Share Method for Options/Warrants contract

    The treasury share method for options and warrants: assume exercise, assume the proceeds buy back shares at the average market price, count only the net new shares. Using the period-end price instead of the average is the standard error, and it changes the answer.

    calculateTreasuryShareMethod(input)
  3. Contingently Issuable Shares contract

    Decides whether shares issuable on a condition count today. The rule is that they are included from the date the condition is *satisfied*, judged as at the reporting date — not when issue is merely likely, which is where judgement creeps in.

    calculateContingentShareInclusion(input)

What they share#

Every topic here is a record-transform, so once you have called one the rest follow the same shape. Import paths differ only in the final segment:

ts
import { calculateConvertiblePreferenceDilution } from "fintech-algorithms/earnings-and-per-share-analytics/basic-and-diluted-eps/if-converted-convertible-preference-dilution";
import { calculateTreasuryShareMethod } from "fintech-algorithms/earnings-and-per-share-analytics/basic-and-diluted-eps/treasury-share-method-for-options-warrants";

Read them in the order above — the sequence is pedagogical, not alphabetical.

Where this sits#

Earnings and Per-Share Analytics collects 5 algorithms across 2 families. For the concept behind this family rather than the call signatures, see the concept guides.