BUSS1030 Lecture Notes - Lecture 9: Dividend Payout Ratio, Operating Cash Flow, Dividend Yield
7 May 2019
School
Department
Course
Professor
IDENTIFY MAIN RATIOS USED TO ANALYSE INVESTMENT PERFORMANCE, AND APPLY THESE RATIOS TO
A BUSINESS
Investment ratios
Dividends per share ratio
• Investment ratio that relates dividends paid for a period to the no. of shares in issue
Dividend payout ratio
• Relates dividends announced for the period to the earnings available for dividends that were
generated in the period
Dividend yield ratio
• Relates cash return from a share to its current market value
Earnings per share ratio
• Relates earnings generated by the business during a period, and available to shareholders to no. of
shares in issue
Operating cash flow per share
• Provide better guide to ability of a company to pay dividends & make planned expenditures than
earnings figure
Document Summary
Identify main ratios used to analyse investment performance, and apply these ratios to. Investment ratio that relates dividends paid for a period to the no. of shares in issue. Dividend payout ratio: relates dividends announced for the period to the earnings available for dividends that were generated in the period. Dividend yield ratio: relates cash return from a share to its current market value. Earnings per share ratio: relates earnings generated by the business during a period, and available to shareholders to no. of shares in issue. Operating cash flow per share: provide better guide to ability of a company to pay dividends & make planned expenditures than earnings figure. Identify a range of other issues relating to financial analysis, including the main. Trend analysis: a form of analysis that uses trends, usually graphically or by % analysis, trends may be identified by plotting key ratios on graph, giving visual representation of changes happening overtime.
