showing the working

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The business behind the dividend

MeasureGRNTMedianFormula
Return on equity4.0%10.6%Net income ÷ shareholders’ equity
Return on capital employed4.6%10.0%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flow$-4.35m$155.08mOperating cash flow − capital expenditure
Operating margin10.3%14.3%Operating income ÷ revenue
Net margin5.4%10.1%Net income ÷ revenue
Debt to equity0.66x0.73xTotal debt ÷ shareholders’ equity
Interest cover1.82x4.22xOperating income ÷ interest expense
Current ratio1.25x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital16.14x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion12.17x1.66xOperating cash flow ÷ net income
Accruals-23.3%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Owner earnings — 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.

Measure202520242023202220212020Median
Return on equity4.0%3.0%12.1%39.5%22.8%-6.5%4.0%
Return on capital employed4.6%7.1%11.6%45.5%27.2%11.6%
Operating margin10.3%15.6%23.0%60.7%49.4%-40.3%15.6%
Net margin5.4%4.9%20.6%52.7%37.4%-27.5%5.4%
Debt to equity0.66x0.32x0.16x0.00x0.11x0.16x
Current ratio1.25x1.33x2.44x2.28x1.45x1.45x
Cash conversion12.17x14.70x3.73x1.32x1.67x3.73x