Kian Hua Khoo asked 3 years ago
Hi Peter/KC,
1) When we are getting the financial value of the company latest report said Q2, the quarter report will show both 3 month and 6month ended. We should select 6 month ended data for value calculation, right?
2) How to calculate the dividend payout ratio from quarter report?
3) Grab Net profit value or (Net profit – foreign currency translation) as the final net income?
4) Do Cash and Cash equivalent need to minus dividends paid to get the final cash value?
KCLau Staff answered 3 years ago
1. The quarterly report Profit & Loss statement or income statement is only for the 3 months or 6 months. So we usually include the previous 3 quarters to make it trailing 12 months for a more accurate picture.
However, the Balance Sheet is the latest figure, like equity, number of shares. Then you will use the latest one in the quarterly report.
2. Dividend Payout – check the payout for the whole year. Usually, get the average of the last five years is better than looking at just one year. That kind of give you an estimation of how much company payout the profit as dividend, compared to retained profit for future growth.
3. Net profit attributable to shareholders is the figure you use. But sometimes some company export products and foreign currency translation might form a big chunk. It can be gain in one year, and loss in the other. So it is better to look at the history of the foreign currency translation. See if loss or gain is more significant? Than do adjustment. Or not much difference, then you can ignore that part to simplify.
4. In the Balance Sheet, the Cash and Cash Equivalent is already post-dividend paid.
Kian Hua Khoo answered 3 years ago
Thanks, KC for the prompt reply. My following questions here.
1) If the company only reported latest Q2 report, so we should look for 6months ended which included total of both Q1 and Q2 ? Eg. operating income, net income. Balance sheet can get equity and number of share but not the example i mentioned above. What i mean in this first question, is to get the latest correct data value for calculate the valuation.
2) I know the previous year dividend payout ratio can grab from ChartView+ but the latest quarter may not be updated yet in CV+. Hence, I want to calculate the ratio from latest quarter report. Which should be the correct number to use (dividend paid/ net profit) ?
KCLau Staff answered 3 years ago
1. You do trailing twelve months. Meaning to look for total income in trailing twelve months, you add Q2 income + Q1 income + last year Q4 income + last year Q3 income. Make it the latest twelve months income so you can compare year on year basis.
2. For simplicity, you can omit the latest dividend paid.. since you want to look at 5 years average payout ratio. But as you wish, you can of course calculate the ratio as (dividend paid/net profit) in the last 12 months.