A payout ratio of 40% means the company paid out 40 paisa of every rupee it earned and kept 60 paisa to reinvest or repay debt. Ratios above 100% mean the dividend exceeded the year's profit, which cannot last unless profit recovers.
Formula
Payout ratio = dividend per share ÷ earnings per share × 100
Payout ratio on the Pakistan Stock Exchange
Across 339 listed companies with the figure, the median is 0.0%.