showing the working

← Horizon Kinetics Holding

The business behind the dividend

MeasureHKHCMedianFormula
Return on equity1.5%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$5.92m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-43.38m$155.08mOperating cash flow − capital expenditure
Operating margin15.2%14.3%Operating income ÷ revenue
Net margin7.0%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals2.4%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, Interest cover, Return on capital employed — 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 equity1.5%27.2%-2.1%-4.0%-96.1%-6.9%-2.8%9.2%22.0%11.4%-2.1%
Return on capital employed-4.3%-45.3%-8.7%34.1%17.7%-4.3%
Operating margin15.2%-27.0%-3.8%-332.7%-21.9%-8.4%-4.7%7.9%18.1%9.1%-4.7%
Net margin7.0%-9.5%-297.0%-37.3%-5.4%-2.3%6.0%11.1%5.3%-2.3%
Debt to equity0.03x0.25x0.25x0.05x0.12x0.12x
Current ratio5.80x1.38x2.26x2.86x5.47x7.61x4.33x3.11x4.33x