showing the working

← LTC Properties

The business behind the dividend

MeasureLTCMedianFormula
Return on equity11.0%10.6%Net income ÷ shareholders’ equity
Return on capital employed10.7%10.0%Operating income ÷ (equity + total debt)
Owner earnings$148.58m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$128.71m$155.08mOperating cash flow − capital expenditure
Operating margin77.9%14.3%Operating income ÷ revenue
Net margin44.9%10.1%Net income ÷ revenue
Debt to equity0.78x0.73xTotal debt ÷ shareholders’ equity
Interest cover6.21x4.22xOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.15x1.66xOperating cash flow ÷ net income
Accruals-0.9%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Current ratio — 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 equity11.0%9.5%10.2%12.1%7.6%12.4%10.4%18.8%11.6%11.5%11.0%
Return on capital employed10.7%12.1%10.5%6.2%3.8%6.7%5.6%10.4%6.0%6.2%6.2%
Operating margin77.9%95.0%94.0%56.6%35.3%60.0%44.2%90.3%50.6%52.0%56.6%
Net margin44.9%43.4%45.5%57.1%36.0%59.8%43.5%91.9%52.0%52.7%45.5%
Debt to equity0.78x0.71x1.01x0.93x0.98x0.85x0.89x0.78x0.88x0.82x0.85x
Cash conversion1.15x1.38x1.16x1.06x1.63x1.22x1.52x0.75x1.21x1.24x1.21x

How it compares in real estate

Among the 11 real estate companies here measured on free cash flow, LTC Properties pays out less than 10 of them. The median for that group is 112.8%, against this company’s 83.4%.

Closest on free cash flow

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