showing the working

← GreenTree Hospitality Group

The business behind the dividend

MeasureGHGMedianFormula
Return on equity10.6%10.6%Net income ÷ shareholders’ equity
Return on capital employed3.0%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-2.07m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$2.88m$155.08mOperating cash flow − capital expenditure
Operating margin5.2%14.3%Operating income ÷ revenue
Net margin15.2%10.1%Net income ÷ revenue
Debt to equity0.20x0.73xTotal debt ÷ shareholders’ equity
Interest cover7.41x4.22xOperating income ÷ interest expense
Current ratio1.61x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital0.36x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.69x1.66xOperating cash flow ÷ net income
Accruals-2.4%-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.

Measure20252024202320222021202020192018Median
Return on equity10.6%7.5%18.7%-26.5%6.3%12.4%23.8%21.2%12.4%
Return on capital employed3.0%9.4%22.4%-25.4%7.0%7.0%
Operating margin5.2%12.1%20.6%-47.3%12.8%34.3%46.2%56.6%20.6%
Net margin15.2%8.2%16.6%-40.8%9.7%28.1%40.5%41.7%16.6%
Debt to equity0.20x0.18x0.04x0.21x0.19x0.19x
Current ratio1.61x1.57x1.21x1.38x1.47x1.82x1.59x3.63x1.59x
Cash conversion1.69x3.39x1.69x3.07x1.13x1.16x1.41x1.69x

How it compares in consumer discretionary

Among the 169 consumer discretionary companies here measured on free cash flow, GreenTree Hospitality Group pays out less than 5 of them. The median for that group is 33.1%, against this company’s 213.8%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →