a) Diluted earnings per share (EPS) and dividend per share (DPS) analysis
Webjet Limited (WEB) in 2014 recorded EPS of 0.24 which at the time represented the best result in the company’s history (Morningstar, 2015). In fact, it was 266% improvement on 2013 result of 0.09. The lower EPS in 2013 was mainly due to a lower Net Profit After Tax (NPAT) of $6.5m (2012: $13.6m) due to impact of incurring a number of one-off costs related to launch and initial trading loss of Lots of Hotels as well as acquisition, transition and trading loss of Zuji business (Webjet Limited 2013, p. 3). However further look at historic EPS suggests that lower 2013 rate was one off with rate remaining stable at 0.14 between 2010 and 2011 and then increasing by 36% to 0.19 in 2012.
WEB total dividend in 2014 reached 13.5 cents (Webjet Limited 2014, p. 1) which resulted in DPS increasing by 4% to 0.135 compared to 0.13 in 2013. Historically, DPS has been growing steadily over the years with 0.105 in 2013 increasing by 5% to 0.11 in 2011 and then raising again by over 18% to reach 0.13 in 2012. The rate hasn’t changed between 2012 and 2013.
b) Dividend payout ratio in 2013 (170 words)
Webjet’s dividend payout ratio in 2013 reached 144% compared to 68% in 2012 and 56% in 2014. This represents a significant increase compared to two corresponding years and is mainly as a result of lower EPS in 2013. The company was able to pay its dividends irrespective of the lower earnings during this year due
In 2011WestJet paid $199,255 for decrease the obligation of long term finance leases, whereas in 2012 they paid $162,678 which is than 2011. The WestJet also repurchased share worth of $112,065 and dividends paid worth of $37,549 but in WestJet paid a dividend of $35, 000. As the company took a large amount of loan they also had to pay huge interest rate.
2. EPS $1.02 – If EPS goes up it Speedster is generating more profit on behalf of its owners, making the common shares more valuable. If this number is going down, it means the company has probably taken on additional debt which in effect is diluting share value. This indicates the company's
Consequently, Target posted a massive growth in earnings per share of 40% to $1.60 per share, compared with the same period last year. Whereas, its quarterly dividends were standing around $0.60 per share, indicating a payout ratio around 40% based on income.
Wells Fargo shows a much higher profitability ratio than Samsung, with over 8X that of Samsung. This is to be expected as services are typically more profitable than hardware sales which operate on leaner margins. Wells Fargo also outperforms Samsung significantly on return on sales with over 25X better performance. This again is attributable to better margins on services than hardware. Wells Fargo has a much stronger return on equity than Samsung with a Dupont ratio over 5X higher than Samsung's. Samsung has a stronger financial leverage ratio than Wells Fargo with almost 20% lower ratio for Samsung. Samsung also has a much lower total asset turnover than Wells Fargo. This is attributable to the quick turnover of assets in the manufacturing industry compared to the slow turnover of assets in the financial services sector.
The firm’s last dividend (D0) was $0.46. Here are the earnings and dividends per share over the last 5 years:
From the industry benchmark report for 2014, (appendix) between the year 2013 and 2014 our share value increased from 15.80 to 27.04 placing us ahead of everyone in our world. That is an increase of 172%. From out firm reports (appendix), our net income of 2,764,446 unfortunately fell short of our profit forecast. of 3,501,014. Even though our share holder’s value was the highest amongst our competitors, our profit before taxes was second to Bikes ‘R’Us by a total of $450,000. They had a profit of 4,339,987 while we only had a profit of 3,949,209. A part of the reason why our net income didn’t meet our forecasts and profit before taxes fell short of Bikes’R’Us is due to
The company has not only paid dividends to investors but repurchased common stock. It is likely that the management views that the shares are undervalued given the company are being a market leader in the low-cost carrier. The airline industry is consolidating with airlines also increasing their dividends while also announcing plans for buybacks with a view of increasing the value of shares (AP, 2014). The company still has various strengths given its record of earnings as well as growth in earnings per share. Even with low profit margins, the company’s dividend will likely increase, given the consistent return on equity over the
there are 4m shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends.
The return on equity (ROE) has also shown an increase in 2009 over the previous year suggesting a successful investment by shareholders. This increase, coupled with the fact that the basic earnings per share (EPS) has increased significantly from 61.78 cents in 2008 to 88.26 cents in 2009 (143%) shows great improvement in the profit per share. Please note that the basic EPS has been used in this analysis as the diluted EPS includes employee options (JBH Annual Report, 2009), skewing and reducing the value of the EPS.
On Mar 8, 2016, the company reduced its FY2016 adjusted EPS guidance from $0.66-$0.69 per diluted share to $0.12-$0.14 per diluted share. Followed by a stock price collapse, the $0.55 plummeting in EPS is primarily a result of:
This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.
BWLD’s revenue has been growing at a rate of around 20% for the years 2014 and 2015, whereas the year-over-year growth of Red Robin and Texas Roadhouse spun around 10% and 12% respectively. So, we can conclude that BWLD is a faster-growing company in $ terms, and predict that its market prospect is rosy. However, the growth of net income in the year 2015 was only 1.06% for BWLD, which was much lower than expected since the growth of revenue was up to 20%. The overall growth performance proved the development of BWLD was healthy, but the difference between above rates implied that their costs and expenses were not well managed. So, one might say that the operational efficiency of the company is not up to industry standards.
Description: the data shows that, company is paying a dividend in the last three years and for 2010 dividend is 4.3 per share.
The payout ratio is set at .30 from 2006 onwards. Notice that the long-term growth rate, which settles in between 2011 and 2012, is ROE × ( 1 – dividend payout ratio ) = .10 × (1 - .30) = .07.
The current EPS of the company is now $14-$15. Historically, the dividend payout ratio mounts to an average 50%. So, the company expects payout the payout in 1959 to be $7/share. In the previous year the dividend rate was cut from $1.3 to $1.2 per share. But after the new deal, the CEO proposed a hike in the quarterly payout to $1.6 per share from the $1.2 given at present. The CEO even suggested the dividend rate to be propped up to $1.80 in 1960.