What was the diluted earnings per common share for Dollar Rent A Car in 2022?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
including Public Warrants and Exchangeable Notes, except when the effect would be antidilutive. Dilutive shares for stock-based instruments and Public Warrants are computed using the treasury stock method and Exchangeable Notes are computed using the if-converted method. Additionally, the Company removes the income or expense impacts related to Public Warrants and Exchangeable Notes when computing diluted earnings (loss) per common share, when the impacts are dilutive.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table sets forth the computation of basic and diluted earnings (loss) per common share:
| (In millions, except per share data)(1) | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Numerator: | ||||
| Net income (loss) available to Hertz Global common stockholders, basic | $ (2,862) $ | 616 | 2,059 | |
| Change in fair value of Public Warrants | — | (163) | (704) | |
| Net income (loss) available to Hertz Global common stockholders, | $ (2,862) $ | 452 | $ 1,355 | |
| diluted | ||||
| Denominator: | ||||
| Basic weighted-average common shares outstanding | 306 | 313 | 379 | |
| Dilutive effect of stock options, RSUs and PSUs | — | 1 | 1 | |
| Dilutive effect of Public Warrants | — | 11 | 23 | |
| Diluted weighted-average common shares outstanding | 306 | 326 | 403 | |
| Antidilutive Public Warrants | 167 | — | — | |
| Antidilutive stock options, RSUs and PSUs | 13 | 6 | 6 | |
| Antidilutive shares related to Exchangeable Notes | 19 | — | — | |
| Total antidilutive | 199 | 6 |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the diluted earnings per common share in 2022 was $3.36. This figure represents the net income available to Hertz Global common stockholders, diluted, divided by the diluted weighted-average common shares outstanding.
Specifically, the net income available to Hertz Global common stockholders, diluted, was $1,355 million in 2022. This was divided by a diluted weighted-average of 403 million common shares outstanding. This calculation includes the impact of potentially dilutive common stock equivalents such as stock options, RSUs, PSUs, and Public Warrants.
Understanding diluted earnings per share is crucial for potential Dollar Rent A Car franchisees as it provides insight into the profitability of the parent company, Hertz Global, on a per-share basis, considering all potential dilutive effects. This metric is often scrutinized by investors and analysts to gauge the financial health and performance of the company. A higher diluted earnings per share generally indicates stronger profitability and financial stability.