The business behind the dividend
| Measure | JKHY | Median | Formula |
|---|---|---|---|
| Return on equity | 21.4% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 26.7% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $446.09m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $588.15m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 23.9% | 14.3% | Operating income ÷ revenue |
| Net margin | 19.2% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.00x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 1.27x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.00x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.41x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -6.1% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Interest cover — 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 | 21.4% | 20.7% | 22.8% | 26.3% | 23.6% | 19.1% | 19.0% | 27.6% | 20.9% | 25.0% | 21.4% |
| Return on capital employed | 26.7% | 24.6% | 25.5% | 31.7% | 28.1% | 24.6% | 24.3% | 27.0% | 29.7% | 36.3% | 26.7% |
| Operating margin | 23.9% | 22.1% | 23.1% | 24.4% | 22.7% | 22.4% | 22.4% | 24.3% | 24.6% | 26.7% | 23.1% |
| Net margin | 19.2% | 17.2% | 17.6% | 18.7% | 17.7% | 17.5% | 17.5% | 24.8% | 16.5% | 18.4% | 17.6% |
| Debt to equity | 0.00x | 0.08x | 0.17x | 0.08x | 0.08x | 0.00x | 0.00x | 0.00x | 0.05x | 0.00x | 0.00x |
| Current ratio | 1.27x | 1.00x | 1.20x | 1.13x | 1.04x | 1.35x | 1.21x | 1.05x | 1.10x | 0.97x | 1.10x |
| Cash conversion | 1.41x | 1.49x | 1.04x | 1.39x | 1.48x | 1.72x | 1.59x | 1.13x | 1.56x | 1.47x | 1.47x |
How it compares in technology
Among the 101 technology companies here measured on free cash flow, Jack Henry & Associates pays out less than 49 of them. The median for that group is 27.8%, against this company’s 28.0%.
Closest on free cash flow
- NetEase (NTES) 27.8%
- Motorola Solutions (MSI) 28.3%
- Playtika Holding (PLTK) 28.3%
- Benchmark Electronics (BHE) 28.6%
Same sector and same denominator, so the figures are comparable. All 115 in technology →