showing the working

← Farmland Partners

The business behind the dividend

MeasureFPIMedianFormula
Return on equity6.7%10.6%Net income ÷ shareholders’ equity
Return on capital employed5.1%10.0%Operating income ÷ (equity + total debt)
Owner earnings$28.41m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$10.12m$155.08mOperating cash flow − capital expenditure
Operating margin61.6%14.3%Operating income ÷ revenue
Net margin60.5%10.1%Net income ÷ revenue
Debt to equity0.35x0.73xTotal debt ÷ shareholders’ equity
Interest cover3.34x4.22xOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.55x1.66xOperating cash flow ÷ net income
Accruals2.0%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Current ratio — 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 equity6.7%12.1%5.8%2.0%2.1%2.3%4.4%3.6%2.1%2.0%2.3%
Return on capital employed5.1%8.8%3.5%2.4%1.7%2.7%3.2%3.4%2.5%3.0%3.0%
Operating margin61.6%54.8%40.8%32.5%44.1%49.2%53.0%48.7%50.4%49.2%
Net margin60.5%53.8%19.1%19.3%14.0%25.9%21.9%17.1%13.9%19.3%
Debt to equity0.35x0.41x0.69x0.74x1.09x1.66x1.64x1.55x1.39x1.44x1.09x
Cash conversion0.55x0.27x0.42x1.46x0.79x2.77x1.30x1.63x0.12x1.17x0.79x

How it compares in real estate

Among the 20 real estate companies here measured on operating cash flow, Farmland Partners pays out less than 0 of them. The median for that group is 152.3%, against this company’s 365.8%.

Closest on operating cash flow

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