showing the working

← Himalaya Shipping

The business behind the dividend

MeasureHSHPMedianFormula
Return on equity10.9%10.6%Net income ÷ shareholders’ equity
Return on capital employed8.0%10.0%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating margin51.7%14.3%Operating income ÷ revenue
Net margin13.4%10.1%Net income ÷ revenue
Debt to equity4.26x0.73xTotal debt ÷ shareholders’ equity
Interest cover1.33x4.22xOperating income ÷ interest expense
Current ratio1.08x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion2.92x1.66xOperating cash flow ÷ net income
Accruals-3.9%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Free cash flow, 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.

Measure2025202420232022Median
Return on equity10.9%13.6%1.0%-2.2%10.9%
Return on capital employed8.0%7.7%2.5%-1.2%7.7%
Operating margin51.7%54.0%39.8%51.7%
Net margin13.4%17.1%4.1%13.4%
Debt to equity4.26x4.61x2.85x0.75x4.26x
Current ratio1.08x0.75x1.30x0.06x1.08x
Cash conversion2.92x2.65x4.27x2.92x

How it compares in industrials

Among the 16 industrials companies here measured on operating cash flow, Himalaya Shipping pays out less than 3 of them. The median for that group is 28.0%, against this company’s 52.0%.

Closest on operating cash flow

Same sector and same denominator, so the figures are comparable. All 348 in industrials →