Sunland Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultra- premium wines, which are sold globally. The company has a strong distribution network in Canada through independent retail locations. The following information has been extracted from the company's annual report. 2024 2023 2022 Market price per share. $11.90 $6.58 $4.83 Earnings per share $0.66 $0.46 $0.37 Dividends per share $0.173 $0.150 $0.147 Net income (in thousands) $21,318 $15,746 $12,299 Shareholders' equity (in thousands). $177,829 $156,460 $147,987 (a)Calculate Sunland's price/earnings ratio from 2022 through 2024. (Round answers to 1 decimal place, eg. 15.2.) 2024 2023 2022 Price/earnings ratio Comment on whether the ratio's trend over this period reflects a company with higher growth potential or one that has achieved maturity. The trend reflects that the company has ___________(the potential for further growth/achieved maturity) (b)Calculate Sunland's dividend payout ratio and dividend yield for 2022 through 2024. (Round answers to 1 decimal place, eg. 15.2%) 2024 2023 2022 dividend payout ratio --------% --------% --------% dividend yield --------% --------% --------% What do the results of these ratios tell us about Sunland Ltd.? The company is paying out a ________(smaller/larger) percentage of their earnings as dividends. (c)Calculate Sunland's return on equity ratio for 2023 and 2024. Note that Sunland's articles of incorporation authorize only common shares. (Round answers to 1 decimal place, eg. 15.2%.) 2024 2023 Return on equity ratio --------% --------% Comment on how effectively Sunland's management has been able to use the equity of its shareholders to generate returns. The company is using its equity to generate returns _____(less/more) efficiently in 2024 than in 2023.
Sunland Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultra- premium wines, which are sold globally. The company has a strong distribution network in Canada through independent retail locations. The following information has been extracted from the company's annual report.
2024 2023 2022
Market price per share. $11.90 $6.58 $4.83
Earnings per share $0.66 $0.46 $0.37
Dividends per share $0.173 $0.150 $0.147
Net income (in thousands) $21,318 $15,746 $12,299
Shareholders' equity (in thousands). $177,829 $156,460 $147,987
(a)Calculate Sunland's price/earnings ratio from 2022 through 2024. (Round answers to 1 decimal place, eg. 15.2.)
2024 2023 2022
Price/earnings ratio
Comment on whether the ratio's trend over this period reflects a company with higher growth potential or one that has achieved maturity.
The trend reflects that the company has ___________(the potential for further growth/achieved maturity)
(b)Calculate Sunland's dividend payout ratio and dividend yield for 2022 through 2024. (Round answers to 1 decimal place, eg. 15.2%)
2024 2023 2022
dividend payout ratio --------% --------% --------%
dividend yield --------% --------% --------%
What do the results of these ratios tell us about Sunland Ltd.?
The company is paying out a ________(smaller/larger) percentage of their earnings as dividends.
(c)Calculate Sunland's return on equity ratio for 2023 and 2024. Note that Sunland's articles of incorporation authorize only common shares. (Round answers to 1 decimal place, eg. 15.2%.)
2024 2023
Return on equity ratio --------% --------%
Comment on how effectively Sunland's management has been able to use the equity of its shareholders to generate returns.
The company is using its equity to generate returns _____(less/more) efficiently in 2024 than in 2023.
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