showing the working

← Alliance Resource Partners

The business behind the dividend

MeasureARLPMedianFormula
Return on equity16.9%10.6%Net income ÷ shareholders’ equity
Return on capital employed16.8%10.0%Operating income ÷ (equity + total debt)
Owner earnings$347.32m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$387.86m$155.08mOperating cash flow − capital expenditure
Operating margin17.6%14.3%Operating income ÷ revenue
Net margin14.2%10.1%Net income ÷ revenue
Debt to equity0.24x0.73xTotal debt ÷ shareholders’ equity
Interest cover9.70x4.22xOperating income ÷ interest expense
Current ratio2.10x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital1.89x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion2.09x1.66xOperating cash flow ÷ net income
Accruals-11.9%-3.1%(Net income − operating cash flow) ÷ total assets

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 equity16.9%19.7%34.3%34.9%15.0%-12.2%31.9%31.0%26.5%31.2%26.5%
Return on capital employed16.8%17.1%31.0%31.7%13.6%-5.0%12.8%20.3%20.3%22.5%17.1%
Operating margin17.6%16.1%26.2%27.6%14.2%-6.2%13.2%18.6%18.5%19.1%17.6%
Net margin14.2%14.7%24.5%24.2%11.6%-9.7%20.4%18.3%16.9%17.6%16.9%
Debt to equity0.24x0.26x0.18x0.25x0.36x0.56x0.62x0.55x0.43x0.50x0.36x
Current ratio2.10x2.20x2.27x2.57x1.91x1.15x1.63x1.51x0.97x0.85x1.63x
Cash conversion2.09x2.23x1.31x1.37x2.36x1.29x1.89x1.83x2.07x1.89x

How it compares in energy

Among the 47 energy companies here measured on free cash flow, Alliance Resource Partners pays out less than 6 of them. The median for that group is 38.2%, against this company’s 86.9%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 66 in energy →