Unformatted text preview: 11.19% is very good which indicates a low level of risk. Their payout ratio is 79% which means their paying very high dividends. The company is good but the problem is that they are paying very high dividends so maybe they are not planning to expand and they want to leave the market thus they are clearing their inventory. Also, their P/E ratio and payout ratio is higher than the industry average which means they are not trustworthy and thus one should investigate and then invest in the company....
View Full Document
- Spring '11
- Accounting, Financial Ratio, payout ratio, acid test ratio, profit margin ratio