showing the working

← Home Bancshares

The business behind the dividend

MeasureHOMBMedianFormula
Return on equity11.1%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$482.38m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$377.02m$155.08mOperating cash flow − capital expenditure
Operating margin47.8%14.3%Operating income ÷ revenue
Net margin37.2%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
Accruals0.3%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, 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 equity11.1%10.2%10.4%8.7%11.5%8.2%11.5%12.8%6.1%13.3%10.4%
Operating margin47.8%40.2%43.6%45.0%66.7%41.1%53.7%57.7%52.1%64.7%47.8%
Net margin37.2%30.9%33.4%34.8%51.0%31.7%40.3%43.8%26.0%40.6%34.8%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, Home Bancshares pays out less than 165 of them. The median for that group is 30.6%, against this company’s 33.4%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →