YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 INVENTORY TURNOVER 5.0 5.7 6.8 SALES TREND 130.0 118.0 100.0 DIVIDENDS PAID PER SHARE $ 2.50 $ 2.50 $ 2.50 DIVIDENDS YIELD RATIO 5% 4% 3% DIVIDEND PAYOUT RATIO 40% 50% 60% RETURN ON TOTAL ASSETS 13.0% 11.8% 10.4% RETURN ON COMMON STOCKHOLDERS' EQUITY 16.2% 14.5% 9.0%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Why dividen yield ratio increase while dividend payout ratio decrease? please explain

YR 3 (2021) YR 2 (2020) YR 1 (2019)
CURRENT RATIO
2.8
2.5
2.0
ACID TEST RATIO
0.7
0.9
1.2
ACCOUNTS RECEIVABLE TURNOVER
8.6
9.5
10.4
INVENTORY TURNOVER
5.0
5.7
6.8
SALES TREND
130.0
118.0
100.0
2.50 $
2.50 $
4%
DIVIDENDS PAID PER SHARE
$
2.50
DIVIDENDS YIELD RATIO
5%
3%
DIVIDEND PAYOUT RATIO
40%
50%
60%
RETURN ON TOTAL ASSETS
13.0%
11.8%
10.4%
RETURN ON COMMON STOCKHOLDERS' EQUITY
16.2%
14.5%
9.0%
Transcribed Image Text:YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 INVENTORY TURNOVER 5.0 5.7 6.8 SALES TREND 130.0 118.0 100.0 2.50 $ 2.50 $ 4% DIVIDENDS PAID PER SHARE $ 2.50 DIVIDENDS YIELD RATIO 5% 3% DIVIDEND PAYOUT RATIO 40% 50% 60% RETURN ON TOTAL ASSETS 13.0% 11.8% 10.4% RETURN ON COMMON STOCKHOLDERS' EQUITY 16.2% 14.5% 9.0%
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