Growth Ratios

One method of Financial Ratio Analysis, Cost Growth Ratios measurethe change in the economic status of a firm over a period of time

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1. Basic Earnings per Share (BEPS)

   FORMULA	SIGNIFICANCE
   Income Available to Common Stockholders Average Common Shares Outstanding	Reflect the company's earning power (i.e. its ability to generaqte income from normal operations).

   
   
2. Earnings Yield

   Earnings per share Market Price per Share

   Shows the relationship of earnings per share to the market price per share.

   
   
3. Cash Flow per Share

   Cash provided by Operations less Preferred Dividends Common Shares Outstanding

   An indicator of short-term capacity to make capital outlays and dividend payments.

   
   
4. Dividend Payout Ratio

   Cash Dividends per Common Share Earnings per Share

   Shows whether a firm pays out most of its earnings in dividends or reinvest the earnings internally.

   
   
5. Dividend Yield

   Cash Dividends per Common Share Market Price per Common Share

   Shows the relationship of common dividends  per share to the market price of such share.

   
   
6. Ratio of Operating Cash Flows to Cash Dividends

   Net Cash provided by Operations Cash Dividends

   Measures the ability to pay dividends from current operating sources.

   
   
7. Internal Growth Rate

   Amount Retained Asset Base

   Measures the percentage increase in asset kept in the business

   
   
8. Sustainable Equity Growth Rate

   Return on Common Equity X (1-Dividend Payout Ration)

   Measures the relationship of earnings retained and the return thereon.