Calculate the dividend payout ratio to determine what percentage of earnings a company distributes to shareholders as dividends. This ratio helps investors assess dividend sustainability and a company's reinvestment strategy.
Total dividends paid divided by outstanding shares
Net income divided by outstanding shares
Divides dividends per share by earnings per share and multiplies by 100 to express as a percentage. A ratio of 60% means the company pays out 60% of its earnings as dividends.
Compute your DTI ratio to assess loan eligibility and financial health.
Measure financial leverage using the debt-to-equity ratio.
Evaluate short-term liquidity with the current ratio.
Measure immediate liquidity using the quick (acid-test) ratio.
Evaluate stock valuation using the Price-to-Earnings ratio.
Measure profitability relative to shareholders' equity with ROE.
