Payout ratio

• Generally, the proportion of earnings paid out to the common stockholders as cash dividends. More specifically, the firm's cash dividend divided by the firm's earnings in the same reporting period.

• This is the proportion of earnings paid out as dividends. The rest would be reinvested in the firm. It equals 1 - plowback ratio. If a corporation pays out 60% of its earnings as dividends, its payout ratio would be 60%.

• The percentage of earnings paid out in dividends, calculated by dividing dividends per share by Earnings Per Share. See also: Payout.


Follow this link for all the terms related to ratio.

 Embedded terms in definition
 Cash dividend
Common stock
Dividends per share
Earnings per share
Plowback ratio
 Related Terms
Acid test ratio
Appraisal ratio
Asset/equity ratio
Average percent payout
Average price earning ratio
Cash flow coverage ratio
Cash ratio
Common equity ratio
Constant payout ratio dividend policy
Conversion ratio
Cost benefit ratio
Current pe ratio
Current ratio
Customary payout ratios
Days' sales in inventory ratio
Debt equity ratio
Debt ratio
Debt service coverage ratio
Debt to capital ratio
Debt to equity ratio
Debt/equity ratio
Dividend payout ratio
Earnings retention ratio
Expense ratio
Feasible target payout ratios
Financial ratio
Fixed asset turnover ratio
Fixed charge coverage ratio
Full payout lease
Funding ratio
Gold/silver ratio
Hedge ratio delta
Income replacement ratio
Interest coverage ratio
Inventory turnover ratio
Lagging pe ratio
Leading pe ratio
Long term debt ratio
Long term debt to equity ratio
Low price earnings ratio effect
Margin of profit ratio
Market book ratio
Market to book ratio
Operating profit ratio
P/e ratio
Pe ratio
Pe ratio to eps growth
Percent payout
Plowback ratio
Preferred equity ratio
Price buy zone ratio
Price earnings ratio
Price to book ratio
Price to cash flow ratio
Price to earnings ratio
Price to sales ratio
Price/book ratio
Price/earnings p/e ratio
Price/sales ratio
Projected pe ratio
Q ratio or tobin's q ratio
Quick acid test ratio
Quick asset ratio
Quick ratio
Ratio analysis
Ratio of exchange
Ratio of exchange in market price
Ratio spread
Ratio writes
Receivables turnover ratio
Retention ratio
Reward to volatility ratio
Sharpe ratio
Target dividend payout ratio
Target payout ratio
Times interest earned ratio
Total debt to equity ratio
Trailing pe ratio
Upside/downside ratio
Working capital ratio
Yield ratio

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