The business behind the dividend
| Measure | HTHT | Median | Formula |
|---|---|---|---|
| Return on equity | 39.7% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 51.3% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $787.00m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.08bn | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 26.9% | 14.3% | Operating income ÷ revenue |
| Net margin | 20.1% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.04x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 20.31x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 0.91x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.65x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -5.1% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Long-term debt to working capital — 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 39.7% | 25.1% | 33.6% | -20.9% | -4.3% | -19.4% | 23.9% | 11.6% | 19.2% | 14.9% | 14.9% |
| Return on capital employed | 51.3% | 31.1% | 35.1% | -1.9% | 1.1% | -7.6% | 13.7% | 15.6% | 12.7% | — | 13.7% |
| Operating margin | 26.9% | 21.8% | 21.5% | -2.1% | 1.3% | -16.4% | 18.9% | 23.3% | 17.6% | 13.3% | 17.6% |
| Net margin | 20.1% | 12.8% | 18.7% | -13.1% | -3.6% | -21.5% | 15.8% | 7.1% | 15.1% | 12.3% | 12.3% |
| Debt to equity | 0.04x | 0.37x | 0.10x | 0.76x | 0.33x | 0.96x | 1.09x | 1.43x | 0.76x | — | 0.76x |
| Current ratio | 0.91x | 0.99x | 0.69x | 0.70x | 0.63x | 1.22x | 1.06x | 1.17x | 1.57x | 1.41x | 0.99x |
| Cash conversion | 1.65x | 2.46x | 1.88x | — | — | — | 1.86x | 4.27x | 1.98x | 2.54x | 1.98x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, H World Group pays out less than 51 of them. The median for that group is 33.1%, against this company’s 51.8%.
Closest on free cash flow
- Rollins (ROL) 50.4%
- Steven Madden (SHOO) 51.0%
- Texas Roadhouse (TXRH) 52.7%
- Penske Automotive Group (PAG) 52.9%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →