showing the working

← Invesco Mortgage Capital

The business behind the dividend

MeasureIVRMedianFormula
Return on equity12.7%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating marginOperating income ÷ revenue
Net margin34.3%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 conversion1.55x1.66xOperating cash flow ÷ net income
Accruals-0.9%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Current ratio, Debt to equity, Free cash flow, Interest cover, Operating margin, Owner earnings, 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 equity12.7%8.2%-2.0%-50.1%-6.4%-122.5%12.4%-3.1%13.3%11.3%-2.0%
Net margin34.3%20.9%-5.7%-207.1%-53.2%-597.6%46.8%-11.0%64.0%-5.7%
Debt to equity6.54x6.67x6.03x5.89x6.54x
Cash conversion1.55x3.06x0.94x0.83x1.16x1.16x

How it compares in real estate

Among the 20 real estate companies here measured on operating cash flow, Invesco Mortgage Capital pays out less than 14 of them. The median for that group is 152.3%, against this company’s 68.1%.

Closest on operating cash flow

Same sector and same denominator, so the figures are comparable. All 130 in real estate →