Dear All,
We have released a fix for when companies report a dividend and a split on the same day. It was not being calculated right, and most importantly, new data coming in affected past results.
Companies that pay dividends and split on the same day is not very common (only about 200 companies have done so in the past) but since it affects popular ratios like PE, your re-runs of old simulations will likely be different.
Splits & dividends occur in the same day in two cases:
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Few companies do this regularly: a cash and stock dividend (example Tootsie Roll - TR )
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In a spinoff there’s usually a reverse split and a cash equivalent dividend (in lieu of the spinoff stocks)
THe effect of the bug is illustrated in the images below for Tootsie Roll. The old version was showing the PE in an upward trend due to the compounding effect of the splits÷nds payed on the same day once a year. The new version shows the PE bounded by a range from 20-40. This is what is expected for PE for a mature company. The last graph shows the yearly cash & stock dividend payed on same day (pink & green bubble stacked) as well as regular dividends (greed bubble) payed by TR.
We are very sorry about this change. It should not have a significant effect on you systems. We’ve mostly noted no change to nice improvemnts in re-runs. The fix will also hopefully end the re-occurring problem of future re-runs producing slightly different results than past ones.
Sincerely,
P123 Team
