Dividend Basis payout ratios, computed from filings

Benjamin Graham

Solvency first, and a published number for every test.

MeasureFormula MedianMiddle half Reporting itPublished thresholdCompanies clearing it
Current ratioCurrent assets ÷ current liabilities1.25x0.89x – 1.79x4462.00x94 of 446
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)2.30x0.93x – 6.84x2581.00x70 of 258

Where each comes from

Current ratioThe first solvency test: current assets at least twice current liabilities.
Long-term debt to working capitalThe second: long-term debt no greater than working capital, which is this ratio at or below one.

Source: The Intelligent Investor, chapter 14, “Stock Selection for the Defensive Investor”.

What this cannot tell you

Graham’s other five criteria need history or a price. Ten years of uninterrupted earnings and twenty years of dividends are longer records than this site holds; his price/earnings under 15 and price/book under 1.5 need a price, so the box on any company page computes both against the figures from the filing.

This page describes a published method and applies its measures to filings. It is not a score, not a ranking and not a recommendation, and no page here aggregates these into a verdict. · All 11 metrics