Diluted Loss Per Share Calculator

The Diluted Loss Per Share (DLPS) Calculator helps businesses, investors, and financial analysts measure a company’s loss per share while considering potential dilution factors. This metric is crucial for assessing financial health, especially for companies reporting losses and having outstanding convertible securities, stock options, or warrants.

By using this tool, investors can understand the worst-case scenario for shareholder value, as it reflects the impact of additional potential shares that could be converted and further reduce earnings per share.

Formula of Diluted Loss Per Share Calculator

The formula to calculate diluted loss per share is:

Diluted Loss Per Share = (Net Loss – Preferred Dividends) / (Weighted Average Shares + Convertible Securities + Stock Options + Warrants)

where:

• Net Loss is the company’s total loss after taxes.
• Preferred Dividends are deducted because they must be paid to preferred shareholders before common shareholders receive any earnings.
• Weighted Average Shares Outstanding represents the average number of common shares in circulation during the reporting period.
• Convertible Securities include bonds or preferred stock that can be converted into common shares.
• Stock Options & Warrants are additional shares that could be exercised, affecting the total share count.

This formula helps assess a company’s financial situation by providing a more conservative estimate of the per-share loss.

General Diluted Loss Per Share Table

The following table provides estimated diluted loss per share values based on common financial scenarios.

Net Loss ($)	Preferred Dividends ($)	Weighted Shares	Convertible Securities	Stock Options	Warrants	Diluted Loss Per Share ($)
-500,000	50,000	500,000	50,000	30,000	20,000	-1.00
-1,000,000	100,000	1,000,000	100,000	50,000	40,000	-1.06
-2,000,000	150,000	1,500,000	150,000	70,000	60,000	-1.19
-3,500,000	250,000	2,000,000	200,000	100,000	80,000	-1.41

This table allows financial professionals to quickly estimate a company’s diluted loss per share based on different loss scenarios.

Example of Diluted Loss Per Share Calculator

Suppose a company reports:

• Net Loss: -$2,000,000
• Preferred Dividends: $100,000
• Weighted Average Shares Outstanding: 1,200,000
• Convertible Securities: 150,000
• Stock Options: 70,000
• Warrants: 50,000

Using the formula:

Diluted Loss Per Share = (Net Loss – Preferred Dividends) / (Weighted Average Shares + Convertible Securities + Stock Options + Warrants)
= (-2,000,000 – 100,000) / (1,200,000 + 150,000 + 70,000 + 50,000)
= -2,100,000 / 1,470,000 = -1.43 per share

This means that if all convertible securities, stock options, and warrants were exercise, the loss per share would be $1.43.

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