showing the working

← Compass Diversified Holdings

The business behind the dividend

MeasureCODIMedianFormula
Return on equity-51.2%10.6%Net income ÷ shareholders’ equity
Return on capital employed0.5%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-128.21m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-51.15m$155.08mOperating cash flow − capital expenditure
Operating margin0.6%14.3%Operating income ÷ revenue
Net margin-12.1%10.1%Net income ÷ revenue
Debt to equity4.25x0.73xTotal debt ÷ shareholders’ equity
Interest cover0.06x4.22xOperating income ÷ interest expense
Current ratio2.42x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital3.71x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-7.2%-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.

Measure2025202420232022202120202019201820172016Median
Return on equity-51.2%-30.8%11.7%-6.7%10.3%2.1%27.1%-0.7%3.2%6.4%2.1%
Return on capital employed0.5%-0.4%-1.6%1.6%5.1%3.9%1.7%2.9%1.7%1.3%1.6%
Operating margin0.6%-0.8%-4.1%2.5%7.1%5.4%2.1%4.2%2.4%1.9%2.1%
Net margin-12.1%-11.7%6.4%-3.4%6.6%1.6%23.9%-0.4%2.8%5.6%1.6%
Debt to equity4.25x5.23x3.60x2.09x1.16x0.82x0.35x1.28x0.68x0.65x1.16x
Current ratio2.42x0.40x0.59x2.22x2.93x2.40x3.08x2.63x2.48x2.24x2.40x
Cash conversion0.15x1.17x6.52x0.28x2.92x2.04x1.17x