The business behind the dividend
| Measure | ADT | Median | Formula |
|---|---|---|---|
| Return on equity | 15.8% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.4% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.79bn | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.71bn | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 25.5% | 14.3% | Operating income ÷ revenue |
| Net margin | 11.6% | 10.1% | Net income ÷ revenue |
| Debt to equity | 2.04x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.78x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 0.93x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 3.16x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -8.1% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Long-term debt to working capital — 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 15.8% | 13.2% | 12.2% | 3.9% | -10.5% | -20.8% | -13.3% | -14.4% | 10.0% | -14.1% | -10.5% |
| Return on capital employed | 11.4% | 10.5% | 10.2% | 5.5% | 0.1% | 0.3% | 1.5% | 2.0% | 2.1% | — | 2.1% |
| Operating margin | 25.5% | 24.7% | 25.3% | 16.5% | 0.2% | 0.8% | 3.8% | 6.1% | 6.5% | -7.8% | 6.1% |
| Net margin | 11.6% | 10.2% | 10.0% | 3.0% | -8.1% | -11.9% | -8.3% | -13.3% | 7.9% | -18.2% | -8.1% |
| Debt to equity | 2.04x | 2.03x | 2.07x | 2.89x | 2.98x | 3.12x | 3.04x | 2.37x | 2.96x | — | 2.89x |
| Current ratio | 0.93x | 0.80x | 0.68x | 0.65x | 0.58x | 0.75x | 0.56x | 0.84x | 0.51x | — | 0.68x |
| Cash conversion | 3.16x | 3.76x | 3.58x | 14.23x | — | — | — | — | 4.65x | — | 3.76x |
How it compares in not classified
Among the 8 not classified companies here measured on free cash flow, ADT pays out less than 6 of them. The median for that group is 35.0%, against this company’s 10.9%.
Closest on free cash flow
- RE/MAX Holdings (RMAX) 1.5%
- Allegion (ALLE) 25.6%
- AGNT (AGNT) 28.2%
- Marcus & Millichap (MMI) 35.0%
Same sector and same denominator, so the figures are comparable. All 10 in not classified →