showing the working

← Armour Residential REIT

The business behind the dividend

MeasureARRMedianFormula
Return on equity14.3%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating marginOperating income ÷ revenue
Net marginNet income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.38x1.66xOperating cash flow ÷ net income
Accruals0.9%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Current ratio, Debt to equity, Free cash flow, Interest cover, Net margin, Operating margin, Owner earnings, Return on capital employed — 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.

Measure2025202420232022202120202019201820172016Median
Return on equity14.3%-1.1%-5.3%-20.7%1.3%-22.9%-17.4%-9.4%13.7%-4.2%-5.3%
Cash conversion0.38x0.76x0.61x0.61x

How it compares in real estate

Among the 20 real estate companies here measured on operating cash flow, Armour Residential REIT pays out less than 4 of them. The median for that group is 152.3%, against this company’s 218.5%.

Closest on operating cash flow

Same sector and same denominator, so the figures are comparable. All 130 in real estate →