The business behind the dividend
| Measure | BABB | Median | Formula |
|---|---|---|---|
| Return on equity | 16.1% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 21.0% | 14.3% | Operating income ÷ revenue |
| Net margin | 16.3% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 4.26x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.74x | 1.66x | Operating cash flow ÷ net income |
| Accruals | 3.0% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Debt to equity, Long-term debt to working capital, Free cash flow, Interest cover, 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.
| Measure | 2025 | 2024 | 2024 | 2024 | 2023 | 2023 | 2022 | 2022 | 2021 | 2020 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 16.1% | — | 15.7% | — | — | 15.7% | 13.6% | — | 22.2% | -2.6% | 15.7% |
| Return on capital employed | — | — | — | — | — | — | — | — | 18.5% | 8.3% | 8.3% |
| Operating margin | 21.0% | 18.8% | 18.8% | — | 17.5% | 17.5% | 18.5% | — | 17.6% | 9.8% | 18.5% |
| Net margin | 16.3% | 14.8% | 14.8% | — | 13.3% | 15.0% | 13.1% | — | 21.2% | -2.8% | 14.8% |
| Debt to equity | — | — | — | — | — | — | — | — | 0.00x | 0.09x | 0.00x |
| Current ratio | 4.26x | — | 3.46x | — | — | 3.49x | 2.80x | — | 2.06x | 1.68x | 2.80x |
| Cash conversion | 0.74x | 1.21x | 1.21x | — | 1.14x | 1.02x | 0.31x | — | 1.10x | — | 1.10x |
How it compares in consumer discretionary
Among the 6 consumer discretionary companies here measured on operating cash flow, BAB pays out less than 0 of them. The median for that group is 14.4%, against this company’s 105.2%.
Closest on operating cash flow
- Aircastle (AYR) 13.0%
- TKO Group Holdings (TKO) 14.4%
- Lithia Motors (LAD) 15.5%
- Triton International (TRTN-PA) 25.7%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →