I am trying to accurately calculate the buy back ratio when a stock split has occurred.
The buyback ratio can be calculated using the formula listed below.
(prev basic shares outstanding - curr basic shares outstanding) / prev basic shares outstanding
Basic shares outstanding can be calculated using the formula listed below.
basic shares outstanding * share factor
The sharadar fields required for these calculations are SHAREBAS and SHAREFACTOR.
period_offset is set to 0 for curr and -1 for prev
When a split occurs there will be a change in SHAREBAS field proportional to the split ratio. This causes inaccuracies in the buyback ratio calculation.
example symbol: UHAL
example sid: FIBBG000BCFXT0
start date: 2022-04-12
I am at a loss for how to properly adjust the sharadar fields mentioned above so that the buyback ratio is accurately calculated. In this specific example the buyback ratio should be 0.
Please correct me if I am wrong, but won't this impact any fundamental signal that is compared over time (across quarters / report periods) that normalizes based on shares outstanding (e.g. price to book, price to earnings, prices to sales, price to free cash flow). Maybe the precomputed values like PE1 or PS are doing the correct thing under the hood, but I couldn't get those values to make sense for ADRs because it looked like the SHAREFACTOR wasn't properly accounted for.
FWIW, the field SHARESWA also has this issue.