PayRatio, known as 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 Typically, PayRatio of 50% or less is regarded as adequate (which would mean that the company is retaining as much cash as it is paying out). At 100% or more, the company is distributing all of its earnings as dividends or even dipping into reserves from previous years.
Formula:
PayRatio = 100 * DivPaid / NetIncBXor
Evauates to NA if NetIncBXor is negative or DivPaid is 0 or negative
It's calculated as Total Dividends divided by Income Before Extraordinary Items for the period, multiplied by 100 to express the number in percentage points. Total dividends, in this case, includes dividends across all share classes and preferred shares. It does not include the value of non-cash dividends like stock dividends that were paid during the period, but it does otherwise include special dividends.
The 5-year average payout ratio is calculated by taking the payout ratios for each of the last five fiscal years, from the annual data feed, and averaging them.
The data points come from SEC filings or company earnings announcements. Because our data provider standardizes financial information to make it comparable across different companies, the specific figures may not always match the original source. For a list of all our line items please refer to our Line-Item Reference Spreadsheet.
There are two access methods: prebuilt factors and using a function.
ItemName(offset, type[, NAHandling])
offset: 0-24 (for interim) 0-19 (for annual)
type: QTR (for interim), ANN (for annual), TTM (for trailing twelve months)
NAHandling: [FALLBACK], KEEPNA, ZERONA
For types QTR & ANN the value is taken straight out of the filing with the corresponding offset, ex: 0 is most recent, 1 is previous, etc. TTM types are computed in two ways: for income and cash flow statement values are calculated by adding four quarterly values. For balance sheet items, TTM is the average of the trailing four quarters.
The NAHandling parameter is optional and is used to control what happens in preliminary reports where many items could be missing. Preliminary reports are press releases by the company and only affect the most recent ("0") offset period. They can last several weeks and can cause false signals due to incomplete data (see "CompleteStmt" for a way to identify companies with preliminary data).
Three options are available when an NA is found in a preliminary report:
|
FALLBACK |
The default setting. When an NA is encountered the value is pulled from the offset "1" period. |
|
KEEPNA |
NAs will be preserved, which can cause the entire expression to fail. |
|
ZERONA |
NAs are converted to 0 |
Below are the available pre-built factors for convenience with the corresponding formula parameters. Please note that availability varies by factor.
| Period | Description | Corresponding Parameters |
|
Q |
Recent Quarter |
(0, QTR) |
| PQ | Prior Quarter | (1, QTR) |
| PYQ | Prior Year quarter | (4, QTR) |
| TTM | Trailing Twelve Months | (0, TTM) |
| PTM | Prior Trailing Twelve Months | (4, TTM) |
| A | Recent Annual | (0, ANN) |
| PY | Prior Year | (1, ANN) |
| Gr%PQ | Growth % PQ | (0, QTR) / (1, QTR) |
| Gr%PYQ | Growth % PYQ | (0, QTR) / (4, QTR) |
| Gr%TTM | Growth % TTM | (0, TTM) / (4, TTM) |
| Gr%PQTTM | Growth % TTM 1Q Ago | (0, TTM) / (1, TTM) |
| Gr%A | Growth % Annual | (0, ANN) / (1, ANN) |
| Gr%3Y | Growth % 3 year | (0, ANN) / (3, ANN) annualized |
| Gr%5Y | Growth % 5 year | (0, ANN) / (5, ANN) annualized |
| Gr%10Y | Growth % 10 year | (0, ANN) / (10, ANN) annualized |
| RSD%ANN | RSD % 10Y of annuals | LoopRelStdDev ("function(CTR,ANN)",10,0,1,1)) |
| RSD%TTM | RSD % 5Y of TTM | LoopRelStdDev ("function(CTR*2,TTM)",10,0,1,1)) |
| RegEstTTM | Regression Est 5Y | Eval(LinReg("function(CTR * 2, TTM)", 10) , EstimateY(0), NA) |
| RegGr%TTM | Regression Gr% 5Y | Eval(LinReg("function(CTR * 2, TTM)", 10) , RegGr%(2), NA) |
| RegEstANN | Regression Est 10Y | Eval(LinReg("function(CTR, ANN)", 10) , EstimateY(0), NA) |
| RegGr%ANN | Regression Gr% 10Y | Eval(LinReg("function(CTR, ANN)", 10) , RegGr%(1), NA) |
| Period | Description | Corresponding Parameters |
| %SalesQ | % of Q Sales | function(0, QTR) / Sales(0, QRT) |
| %SalesA | % of A Sales | function(0, ANN) / Sales(0, ANN) |
| %AssetQ | % of Q Assets | function(0, QTR) / AstTot(0, QRT) |
| %AssetA | % of A Assets | function(0, ANN) / AstTot(0, ANN) |
| PSQ | Per Share Q | function(0, QTR) / Shares(0, QRT) |
| PSA | Per Share A | function(0, ANN) / Shares(0, ANN) |
| 3YAvg | 3 Year Average | LoopAvg("function(CTR, ANN)", 3) |
| 5YAvg | 5 Year Average | LoopAvg("function(CTR, ANN)", 5) |
NOTES:
Click here for the Line-Item Reference Spreadsheet.