showing the working

← Alight Inc. / Delaware

The business behind the dividend

MeasureALITMedianFormula
Return on equity-296.6%10.6%Net income ÷ shareholders’ equity
Return on capital employed-101.3%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-2.91bn$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$250.00m$155.08mOperating cash flow − capital expenditure
Operating margin-136.6%14.3%Operating income ÷ revenue
Net margin-136.9%10.1%Net income ÷ revenue
Debt to equity1.92x0.73xTotal debt ÷ shareholders’ equity
Interest cover-24.33x4.22xOperating income ÷ interest expense
Current ratio1.31x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital7.41x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-75.7%-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.

Measure20252024202320222021Median
Return on equity-296.6%-3.6%-7.7%-1.4%-0.8%-3.6%
Return on capital employed-101.3%-1.4%-1.1%-1.3%-1.3%
Operating margin-136.6%-3.9%-3.4%-4.3%-3.9%
Net margin-136.9%-6.7%-14.5%-2.8%-6.7%
Debt to equity1.92x0.47x0.63x0.64x0.69x0.64x
Current ratio1.31x1.42x1.27x1.20x1.16x1.27x

How it compares in industrials

Among the 289 industrials companies here measured on free cash flow, Alight Inc. / Delaware pays out less than 94 of them. The median for that group is 24.4%, against this company’s 34.4%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 348 in industrials →