EPS can decrease after a share repurchase regardless of if the repurchase is funded by cash or debt. If funded by excess cash like in this example, depending on what our cash & cash equivalents is earning, if we're in a normal interest rate cycle with positive short-term rates of say 2-3%, this cash might actually be earning money. So using it for a buyback may actually impact Net Income as the income on this cash is not being recognized in Net Income anymore.
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EPS can decrease after a share repurchase regardless of if the repurchase is funded by cash or debt. If funded by excess cash like in this example, depending on what our cash & cash equivalents is earning, if we're in a normal interest rate cycle with positive short-term rates of say 2-3%, this cash might actually be earning money. So using it for a buyback may actually impact Net Income as the income on this cash is not being recognized in Net Income anymore.