You really drive home the point.m and you're correct; stock-based compensation primarily affects equity, not cash reserves. While there may be cash outflows for settling awards or taxes, the overall impact on cash is limited compared to other expenses. The question now will be how deep is those impact on equity?
I believe stock based compensation hits cash when company settles awards or their tax impact in cash. So SBC does have a limited impact on cash.
You really drive home the point.m and you're correct; stock-based compensation primarily affects equity, not cash reserves. While there may be cash outflows for settling awards or taxes, the overall impact on cash is limited compared to other expenses. The question now will be how deep is those impact on equity?