Financial
Statement Analysis
ANALYSIS PROFITABILITY
( DIVIDEND PAYOUT
RATIO
METHOD )
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SRI
AYU
361
10 030
3B-D3
A.
ANALYSIS
PROFITABILITY
a.
DEFINITION
Profitability analysis is an analysis of the operating
performance of a company. On this analysis, the company measures the company's
ability to generate income either by using existing assets as well by using
their own capital.
b.
THE
BENEFIT FOR COMPANY
Every company is most concerned
with its profitability. One of the most frequently used tools of financial
ratio analysis is profitability ratios which are used to determine the
company's bottom line and its return to its investors.
B.
DIVIDEND
PAYOUT RATIO
The dividend payout ratio is the amount of dividends paid
to stockholders relative to the amount of total net income of a company. The
amount that is not paid out in dividends to stockholders is held by the company
for growth. The amount that is kept by the company is called retained earnings.
C.
DIVIDEND PAYOUT RATIO FORMULA
Dividen Payout Ratio =
Dividends per share
earning per share
Dividen Payout Ratio =
Dividends
Net Income
D.
How to calculate the dividend
payout ratio of PT Sepatu Bata

Dividend payout ratio = dividend
per share
earning per share
= 1230
4217
= 0,29 or 29 %

Dividend payout
ratio = Dividends
Net Income
= Rp
15.990.000
Rp 54.823.054
= 0,29 or 29 %
E. Interpretation
So, the ratio
of income that paid out to the
shareholder as dividend is 0,29 or 29 %.
In the other words,
the net income of the company haved , can results 0,29 or 29 % dividen ratio.
F. Conclusion
Dividend pay out
ratio refers to the fraction of Net income (Income after tax) paid out to
shareholders as Dividends. Investors with preference to high incomes normally
go for companies with higher dividend ratio.
This
ratio formula is used by
some when considering whether to invest in a profitable company that pays out
dividends versus a profitable company that has high growth potential.