Definition
The Payout Ratio is a financial metric showing the proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company`s total earnings.
Usage and Context
The payout ratio shows the percentage of earnings paid to shareholders as dividends.
Frequently asked questions
What does the payout ratio measure?
The payout ratio measures the proportion of earnings a company pays as dividends to shareholders.
What is the payout ratio quizlet?
The payout ratio measures the proportion of earnings paid as dividends to shareholders.
What does the payout ratio denote?
The payout ratio denotes the percentage of earnings paid out as dividends to shareholders.
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Benefits
The payout ratio indicates how much profit is returned to shareholders, helping in investment decisions.
Conclusion
The Payout Ratio indicates how much profit is returned to shareholders.
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