showing the working

← Archrock

The business behind the dividend

MeasureAROCMedianFormula
Return on equity21.6%10.6%Net income ÷ shareholders’ equity
Return on capital employed10.9%10.0%Operating income ÷ (equity + total debt)
Owner earnings$76.59m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$119.64m$155.08mOperating cash flow − capital expenditure
Operating margin28.4%14.3%Operating income ÷ revenue
Net margin21.6%10.1%Net income ÷ revenue
Debt to equity1.62x0.73xTotal debt ÷ shareholders’ equity
Interest cover2.56x4.22xOperating income ÷ interest expense
Current ratio1.54x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital22.53x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.93x1.66xOperating cash flow ÷ net income
Accruals-6.9%-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 equity21.6%13.0%12.1%5.1%3.2%-7.3%9.0%2.5%2.4%-7.6%3.2%
Return on capital employed10.9%6.6%5.8%2.5%1.6%-3.3%3.0%1.5%-1.9%-4.1%1.6%
Operating margin28.4%20.1%14.4%7.2%5.0%-9.8%6.1%3.9%-5.4%-11.1%5.0%
Net margin21.6%14.9%10.6%5.2%3.6%-7.8%10.1%2.3%2.4%-6.8%3.6%
Debt to equity1.62x1.66x1.82x1.80x1.72x1.81x0.79x1.83x1.84x2.03x1.80x
Current ratio1.54x1.24x1.40x1.56x1.49x1.63x1.67x1.70x1.69x2.02x1.56x
Cash conversion1.93x2.49x2.95x4.59x8.41x2.98x10.73x10.64x4.59x

How it compares in utilities

Among the 76 utilities companies here measured on GAAP earnings, Archrock pays out less than 63 of them. The median for that group is 60.7%, against this company’s 43.7%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 80 in utilities →