Net Income Available to Common Shareholders (NIACS) is a key financial metric that shows how much profit a company has left for its common stockholders after accounting for preferred dividends and other obligations. Here’s exactly where to find it in financial statements and how to calculate it.
Where It Appears in Financial Statements
1. Income Statement (Directly Listed)
- Some companies explicitly label it as “Net Income Available to Common Shareholders”
- Typically appears near the bottom of the income statement
2. Calculation from Net Income
If not directly listed, calculate it using:
Net Income
– Preferred Dividends
= Net Income Available to Common Shareholders
3. Earnings Per Share (EPS) Disclosure
- Found in the income statement notes or earnings press release
- Basic EPS = NIACS ÷ Weighted Average Common Shares Outstanding
Why This Metric Matters
- Shows real earnings allocable to common stock
- Impacts dividend payouts and shareholder equity
- Used to calculate key ratios (EPS, P/E ratio)
Example: Apple’s 2023 Annual Report
| Line Item | Amount ($B) |
|---|---|
| Net Income | $99.8 |
| Preferred Dividends | $0 |
| NIACS | $99.8 |
Since Apple has no preferred stock, its net income = NIACS.
Key Financial Statements to Check
- 10-K (Annual Report) → Income Statement
- 10-Q (Quarterly Report) → Condensed Income Statement
- Earnings Releases → Company website or SEC filings
Pro Tip: Always verify if preferred dividends exist (common in banks/REITs).
Need to find it fast? Search SEC filings for “net income attributable to common shareholders” or check the EPS calculation section.
Still unsure? Consult the company’s investor relations page or MD&A (Management Discussion & Analysis) for clarity.
