Origin Agritech(Seed) 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 SEED 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', SEED's dividend payout ratio was 0.00, demonstrating the portion of earnings distributed as dividends. Industry average for Farming/Seeds/Milling in '2021' stood at 0.66.
• In '2022', SEED's dividend payout ratio was 0.02, demonstrating the portion of earnings distributed as dividends. Industry average for Farming/Seeds/Milling in '2022' stood at 0.41. Industry average declined by 0.26 from previous year.
• In '2023', SEED's dividend payout ratio was 0.05, demonstrating the portion of earnings distributed as dividends. Industry average for Farming/Seeds/Milling in '2023' stood at 0.36. Industry average declined by 0.04 from previous year.
Overall, SEED's dividend payout ratio has been volatile but showed an upward trend over the past 3 years.
Formula: Dividend Payout Ratio = Dividends / Net Income
Good Range: Ranges widely; 30%-60% common for mature firms.