showing the working

← Acadia Healthcare

The business behind the dividend

MeasureACHCMedianFormula
Return on equity-56.6%10.6%Net income ÷ shareholders’ equity
Return on capital employed-24.0%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-1.49bn$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-439.91m$155.08mOperating cash flow − capital expenditure
Operating margin-32.2%14.3%Operating income ÷ revenue
Net margin-33.3%10.1%Net income ÷ revenue
Debt to equity1.28x0.73xTotal debt ÷ shareholders’ equity
Interest cover-8.55x4.22xOperating income ÷ interest expense
Current ratio1.55x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital8.55x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-22.3%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity-56.6%8.3%-0.8%9.7%7.6%-35.4%4.3%-7.5%7.8%0.3%0.3%
Return on capital employed-24.0%6.8%-0.6%8.9%6.9%3.7%10.4%10.7%10.4%11.2%6.9%
Operating margin-32.2%10.8%-0.9%14.3%11.9%8.8%29.2%31.2%21.3%21.7%11.9%
Net margin-33.3%8.1%-0.7%10.5%8.2%-32.2%5.4%-9.2%7.0%0.2%0.2%
Debt to equity1.28x0.64x0.49x0.49x0.59x1.64x1.26x1.37x1.26x1.52x1.26x
Current ratio1.55x1.00x0.67x1.30x1.22x1.93x1.17x1.08x1.25x1.25x1.22x
Cash conversion0.51x1.39x1.96x3.06x2.00x1.96x