Payout ratio

Payout ratio is the share of earnings paid out as dividends; $1 paid on $4 earned is 25%. Above 100% the dividend comes from savings or debt. Check it against the cash flow statement on EDGAR, since dividends are paid in cash, and against what the guide says about next year.

Go on

In MochaLearnLearn how to read US earnings
  • 10-K and 10-QA 10-K is the audited annual report a US listed company files with the SEC; a 10-Q is the unaudited quarterly version.…
  • EPSEPS is earnings per share: net profit divided by shares outstanding. On results day it is compared with the published…
  • Form 4Form 4 is the SEC filing a company insider must make within two business days of buying or selling the company's…
  • SEC filingsSEC filings are the documents US listed companies must submit: 10-K annual, 10-Q quarterly, 8-K within four business…
  • Implied volatilityImplied volatility is the volatility an option's price implies, worked backward from the premium: the market's priced…
  • Market correctionA correction is a fall of 10% to 20% from a recent high, a convention, not a rule. Most start on a rate repricing or a…

Where it comes up