The business behind the dividend
| Measure | HRB | Median | Formula |
|---|---|---|---|
| Return on equity | 624.4% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 53.1% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $773.42m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $756.08m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 21.6% | 14.3% | Operating income ÷ revenue |
| Net margin | 18.6% | 10.1% | Net income ÷ revenue |
| Debt to equity | 12.69x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 10.59x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.13x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 11.29x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.14x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -3.2% | -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.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 624.4% | 681.4% | 657.1% | — | 261.6% | 165.7% | -10.6% | 78.0% | 155.7% | — | 261.6% |
| Return on capital employed | 53.1% | 49.4% | 48.2% | 46.8% | 38.8% | 41.4% | -0.1% | — | — | — | 46.8% |
| Operating margin | 21.6% | 20.8% | 21.1% | 20.5% | 19.0% | 22.3% | -0.1% | — | — | — | 20.8% |
| Net margin | 18.6% | 16.1% | 16.5% | 15.9% | 16.0% | 17.1% | -0.3% | 13.7% | 19.4% | 13.5% | 16.0% |
| Debt to equity | 12.69x | 16.80x | 16.46x | 46.44x | 7.03x | 4.23x | 49.20x | 2.76x | 3.80x | — | 12.69x |
| Current ratio | 1.13x | 0.90x | 1.27x | 1.26x | 1.39x | 1.46x | 1.96x | 2.16x | 2.24x | 1.43x | 1.39x |
| Cash conversion | 1.14x | 1.12x | 1.21x | 1.48x | 1.46x | 1.07x | — | 1.44x | 1.39x | 1.35x | 1.35x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, H&R Block pays out less than 104 of them. The median for that group is 33.1%, against this company’s 27.9%.
Closest on free cash flow
- Marriott International (MAR) 27.5%
- Costco Wholesale (COST) 27.9%
- EVI Industries (EVI) 28.0%
- HireQuest (HQI) 28.1%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →