Renn Fund(Rcg) Financials: Dividend Payout Ratio Compared To Industry Average, Plus Other Key Ratios
Valuation Trend (Last 5 Years)
Valuation - dividend payout ratio
This chart shows the historical trend of dividend payout ratio for RCG compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Dividend Payout Ratio
Definition: The dividend payout ratio shows what portion of the company’s profits are paid out to shareholders as dividends. If it’s 60%, that means 60% goes to shareholders, while 40% is kept inside the business for future growth. High payout ratios reward shareholders today. Lower payout ratios suggest the company believes it can earn even more by reinvesting in itself.
Interpretation:
• In '2021', RCG's dividend payout ratio was 0.03, demonstrating the portion of earnings distributed as dividends. Industry average for Investment Managers in '2021' stood at 0.70.
• In '2022', RCG's dividend payout ratio was 0.16, demonstrating the portion of earnings distributed as dividends. Industry average for Investment Managers in '2022' stood at 1.62. Industry average increased by 0.92 compared to previous year.
Overall, RCG's dividend payout ratio has been volatile but showed an upward trend over the past 2 years.
Formula: Dividend Payout Ratio = Dividends / Net Income
Good Range: Ranges widely; 30%-60% common for mature firms.