showing the working

← Goosehead Insurance

The business behind the dividend

MeasureGSHDMedianFormula
Return on equityNet income ÷ shareholders’ equity
Return on capital employed37.8%10.0%Operating income ÷ (equity + total debt)
Owner earnings$33.43m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$86.09m$155.08mOperating cash flow − capital expenditure
Operating margin20.4%14.3%Operating income ÷ revenue
Net margin7.6%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratio1.60x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital8.29x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-15.4%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Debt to equity, Interest cover, Return on equity — 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.

Measure202520242023202220212020201920182017Median
Return on equity69.3%50.6%5.3%50.6%
Return on capital employed37.8%44.9%31.4%9.7%8.0%25.6%37.9%-34.9%101.2%31.4%
Operating margin20.4%19.4%12.6%4.8%5.7%17.0%18.2%-23.2%17.8%17.0%
Net margin7.6%9.7%5.4%0.3%3.6%7.9%4.6%-14.8%20.3%5.4%
Debt to equity2.10x2.75x8.77x2.75x
Current ratio1.60x2.34x1.82x1.46x1.66x2.49x1.99x2.92x1.34x1.82x

How it compares in financial services

Among the 52 financial services companies here measured on free cash flow, Goosehead Insurance pays out less than 1 of them. The median for that group is 31.5%, against this company’s 169.3%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 67 in financial services →