1. -what is the conclusion to make if sales per share
ofa company fluctuates over years?
-what is the conclusion to make if divedent per share
ratio is reducing over the years?
1. -what is the conclusion to make if sales per share of a company fluctuates over years?
If the number of shares is constant over the years of comparison, then it means that the total sales is fluctuating,
If the number of shares has been changing, then the fluctuation in total sales should be considered to assess the variability in sales.
-what is the conclusion to make if dividend per share ratio is reducing over the years?
If the number of shares is the same over the years of comparison, it would mean decreasing dividends. This in turn, might be due to decreasing net income available to the common shareholders or decreasing payout ratio over the years.
However, if the number of shares varies over the years of comparison, then the payout ratio should be calculated to find out if there is decreasing trend in dividends paid.
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