In order to better track and report on Company ownership over time, we use a ‘Conversion Ratio’ field on the Round Details record. This article details how Conversion Ratio field behaves, how the field is used for ownership calculations, and how the underlying calculations operate.
Conversion Ratio Field
As depicted in the screenshot above, the default value of the Conversion Ratio field is 1.0000. This field editable so the user may enter in the appropriate Conversion Ratio amount for each round.
Using the Conversion Ratio Field
Both the ‘Current Ownership’ and ‘Ownership’ formulas on the Transaction record have been updated to incorporate this new field.
The fields used for these calculations pull from different records. Below is a list of each field and their corresponding record.
- Total Fully Diluted Shares (Company Summary)
- Conversion Ratio (Round Details)
- Current Shares (Transaction)
- Shares (Transaction)
See the image below for help with finding the 'Fully Diluted Shares' field:
See the images below for help with finding each ownership calculation on the Transaction:
Current Ownership & Ownership
Breaking Down the Calculations
The formulas for the 'Current Ownership' and the 'Ownership' calculation fields reside on the Transaction record. The formulas are provided below:
- 'Current Ownership' field calculation
- ((Current Shares) X (Conversion Ratio)) / Total Fully Diluted Shares
- 'Ownership' field calculation
- ((Shares) X (Conversion Ratio)) / Total Fully Diluted Shares