DEVIDEND
PAYOUT RATIO
A.
Definition
of Financial statement analysis
Financial
statement analysis is the process of reviewing and evaluating a company’s
financial statement (such as balance sheet or profit and loss statement). Financial
statement analysis is the process of understanding the risk and profitability
of a firm through analysis of reported financial information, by using
different accounting tools and techniques. Financial analysis done by a
professional who presents the report in the form of ratios that use information
as presented in the financial statements. These reports are usually presented
to top management of a business as a reference to taking a company policy.
Financial statement analysis consists
of:
1. Reformulating
reported financial statement,
2. Analysis
and adjustment of measurement errors, and
3. Financial
ratio analysis on the basis of reformulated and adjusted financial statement.
Based on this analysis, the management
may decide various management decisions such as:
• Continuing or not the operations of a business .
• Undertake the manufacture or purchase of raw
materials in the production process
• Make a purchase or lease production machinery
• Other decisions that allow management did the right
choice.
B.
The
purpose of financial analysis
·
Profitability is the ability of the
company to generate a profit and sustain growth in both short term and long
term. Profitability of the company is usually seen from the company's profit
and loss (income statement) that shows the performance results of the company's
report.
·
Solvency is the ability of the company
to meet all its obligations, which is measured by making comparisons across all
assets and liabilities against all liabilities to equity ratio
·
Liquidity is the ability of the company
to meet its current liabilities are measured using the ratio between current
assets by current liabilities.
·
Stability is the ability of the company
to maintain its business in the long term without having to suffer losses. Used
to assess the stability of the company's income statement and balance sheet
(balance sheet) as well as the company's various financial and non-financial
indicators of other
C.
Dividend
Payout Ratio (DPR)
Dividend
payout ratio is the ratio of dividend per share
by earnings per share. It is a measure of how much earnings a company is
paying out to its shareholders as compared to how much it is retaining for
reinvestment.
The
percentage of earnings paid to shareholders in dividends.
Calculated as:
Calculated as:
D.
Financial
Statement
E.
Result
of Analysis and Conclusion
Conclusion:
Interpretation of: from the analysis above can be drawn a conclusion that, PT
Cowell increase the amount to payment dividend to shareholders, it is done
because in general investors are attracted to companies that have a high
dividend payout. It can be seen from the increase of the year 2009 - 2010 was
9.8% -> 24.42% of the net profit of the company. Usually the rapid
development companies prefer to reinvest in the company's activities than do
dividend payments to investors in the hope of the future agreement will benefit
all parties
