The business behind the dividend
| Measure | AEM | Median | Formula |
|---|---|---|---|
| Return on equity | -13.7% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 3.3% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | — | — | Operating income ÷ revenue |
| Net margin | — | — | Net income ÷ revenue |
| Debt to equity | 0.34x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.28x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 3.82x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.68x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
| Accruals | -17.0% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Free cash flow, Net margin, Operating margin, Owner earnings — 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 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | Median |
|---|---|---|---|---|---|---|---|---|
| Return on equity | -13.7% | 9.1% | -17.8% | 9.1% | 3.1% | 2.9% | — | 2.9% |
| Return on capital employed | 3.3% | 21.5% | -8.3% | 11.1% | 4.6% | — | — | 4.6% |
| Operating margin | — | — | — | — | 24.8% | — | — | 24.8% |
| Net margin | — | — | — | — | 13.5% | 18.0% | 30.2% | 18.0% |
| Debt to equity | 0.34x | 0.24x | 0.29x | 0.18x | 0.26x | — | — | 0.26x |
| Current ratio | 3.82x | 3.26x | 3.23x | 2.22x | 3.17x | 1.89x | — | 3.17x |
| Cash conversion | — | 2.24x | — | 1.46x | 1.33x | 1.66x | 1.76x | 1.66x |