Ratio Analysis Consider the following information taken from the stockholders' equity section: (dollar amount in...
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Ratio Analysis Consider the following information taken from the stockholders' equity section: (dollar amount in thousands) 2024 2023 Preferred stock $1,000 $2,000 Common stock, 230,000,000 and 176,000,000 shares issued in 2024 and 2023, respectively 2,300 1,760 Additional paid-in capitalcommon stock 567,000 432,000 Retained earnings 4,604,600 3,700,000 Accumulated other comprehensive (loss) income (454,600) 147,000 Treasury stock (37,000,000 and 19,000,000 shares in 2024 and 2023, respectively) at cost (1,750,000) (975,000) Total stockholders' equity $2,970,300 $3,307,760 Additional Information (all numbers in thousands other than per-share information): 2024 Weighted average common shares outstanding 204,000 Price per share at year end $ 65.31 Net income $1,224,600 Preferred dividends $65,000 Common dividends $255,000 Common dividends per share $1.16 Stock repurchases $775,000 Required: 1. Calculate the following for 2024: Round your answers to two decimal places. Stockholder Payout: Dividend yield fill in the blank 1 % Dividend payout fill in the blank 2 % Total payout fill in the blank 3 % Stock repurchase payout fill in the blank 4 % Stockholder Profitability: Return on common equity fill in the blank 5 % EPS $fill in the blank 6 per share 2. Conceptual Connection: Assume 2023 ratios were: Stockholder Payout Stockholder Profitability Dividend yield: 2.31% Return on common equity: 37.41% Dividend payout: 13.65% EPS: $6.12 Total payout: 78.59% Stock repurchase payout: 64.94% And the current year industry averages are: Stockholder Payout Stockholder Profitability Dividend yield: 2.50% Return on common equity: 44.44% Dividend payout: 15.10% EPS: $6.48 Total payout: 55.10% Stock repurchase payout: 40.00% How do you interpret the company's payout and profitability performance? In 2024, below the industry averages. Overall, this could indicate a investment choice.
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