Question
Ratio Analysis Consider the following information taken from the stockholders' equity section: (dollar amount in thousands) 2024 2023 Preferred stock $1,000 $1,000 Common stock, 334,328,193
Ratio Analysis
Consider the following information taken from the stockholders' equity section:
| (dollar amount in thousands) | ||||||
| 2024 | 2023 | |||||
| Preferred stock | $1,000 | $1,000 | ||||
| Common stock, 334,328,193 and 330,961,869 shares issued in 2024 and 2023, respectively | 3,343 | 3,310 | ||||
| Additional paid-in capital - common stock | 766,382 | 596,239 | ||||
| Retained earnings | 5,460,629 | 4,630,390 | ||||
| Accumulated other comprehensive (loss) income | (206,662) | 58,653 | ||||
| Treasury stock (76,275,837 and 56,960,213 shares in 2024 and 2023, respectively) at cost | (3,267,955) | (2,205,987) | ||||
| Total stockholders' equity | $2,756,737 | $3,083,605 | ||||
| Additional Information (all numbers in thousands other than per-share information): | 2024 | |
| Weighted average common shares outstanding | 264,453 | |
| Price per share at year end | $70.47 | |
| Net income | $1,123,153 | |
| Preferred dividends | $80,000 | |
| Common dividends | $212,914 | |
| Common dividends per share | $0.84 | |
| Stock repurchases | $1,061,968 | |
Required:
1. Calculate the following for 2024. Round your answers to two decimal places.
| Stockholder Payout: | ||
| Dividend yield | fill in the blank 1 | % |
| Dividend payout | fill in the blank 2 | % |
| Total payout | fill in the blank 3 | % |
| Stock repurchase payout | fill in the blank 4 | % |
| Stockholder Profitability: | ||
| Return on common equity | fill in the blank 5 | % |
| EPS | $fill in the blank 6 | per share |
2. Conceptual Connection: Assume 2023 ratios were:
| Stockholder Payout | Stockholder Profitability |
| Dividend yield: 0.85% | Return on common equity: 34.26% |
| Dividend payout: 9.80% | EPS: $3.51 |
| Total payout: 70.00% | |
| Stock repurchase payout: 60.20% |
and the current year industry averages are:
| Stockholder Payout | Stockholder Profitability |
| Dividend yield: 0.76% | Return on common equity: 23.81% |
| Dividend payout: 12.35% | EPS: $1.23 |
| Total payout: 48.37% | |
| Stock repurchase payout: 36.02% |
How do you interpret the company's payout and profitability performance?
In 2024,
only the stockholder profitability ratio isonly the stockholder payout ratio isboth the stockholder payout and stockholder profitability ratios are
above the industry averages. Overall, this could indicate a
goodbad
investment choice.
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Intermediate Accounting
Authors: Fred Skousen, James Stice, Earl Kay Stice
14th Edition
0324013078, 9780324013078
