Shareholders - measuring business performance, Finance Basics

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Shareholders - Measuring Business Performance

Shareholders

Actual owners are interested in the company's both short and long term survival.  For this cause they will need ratios as:

a) Profitability ratios - that seek to establish viability.

b) Dividend ratios - that seek to establish return to owners in form of dividends. The common ratios include earning yield or like E/Y, Dividend payout ratio or like DPO, dividend yield, Price earnings ratio, all of that will measure return to owner.


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