Cash dividends are dividends paid by companies to shareholders in the form of cash, which is an important form of dividend distribution. It is important for investors to understand how to calculate the cash dividends that can be paid.
First, to calculate the cash dividends that can be paid, you need to understand the company's net profit and equity structure. The company's net profit is the balance of the company's income after deducting various costs, expenses and taxes, and is the largest dividend issued by the company. The share capital structure includes information such as the number, type, and per share, which is an important factor in determining the amount of cash dividends that can be distributed.
Based on the company's share capital structure, earnings per share can be calculated, i.e., the amount of earnings per share**. Earnings per share is the result of a company's net profit divided by ** quantity. On the basis of calculating earnings per share, the distributable cash dividend per share can be further calculated. The distributable cash dividend per share is the result of the company's net profit minus retained earnings such as provident fund and community chest, and then divided by the number of **.
In addition to the basic calculation methods mentioned above, there are a few other factors to consider. For example, a company's cash flow position, debt position, future development plans, etc., will have an impact on the amount of cash dividends that can be distributed. Therefore, investors need to have a comprehensive understanding of the company's operating and financial health when calculating distributable cash dividends.
It is also important to note that the payment of cash dividends and the amount of such dividends are usually decided by the board of directors of the company and announced in the company's annual financial report. Investors should pay attention to the relevant information about cash dividends in the company's annual report in order to better understand the company's operating conditions and investment value.
In summary, the calculation of payable cash dividends requires a comprehensive consideration of the company's operating conditions and financial condition. Investors should have a comprehensive understanding of the company's status in order to better grasp the investment opportunities and risks.