OTCPK:ICPVF - Post by User
Comment by
blade86caon Feb 22, 2016 1:38am
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Post# 24580640
RE:RE:RE:Divvy increase...
RE:RE:RE:Divvy increase...Lundu....
On Sedar.com IPL has posted their "MD&A-English" PDF document and on page 63 and 64 they talk about how they measured out their payout ratio. After reading it myself they say it is based off FFO which is based off several components from their net income (depreciation and amortization, deferred income tax expenses etc)
I think normally most companies including IPL use Fund Flow from Operations and then as long as capex (sustaining and growing) + dividends is less than FFO than IPL should have payout ratio under 100% ( which is good and sustainable )
You could use net income as well technically , but that takes non-cash items into account like depreciation and amortization, defered income tax expenses etc ( I see on page 30 that is what they did used net income + $ distributed cash dividends which showed for nearly all of 2015 they were not able to technically fund dividend based on net income , but that isn't the right metric to use for measurement)