showing the working

← Matthews International

The business behind the dividend

MeasureMATWMedianFormula
Return on equity-5.1%10.6%Net income ÷ shareholders’ equity
Return on capital employed6.3%10.0%Operating income ÷ (equity + total debt)
Owner earnings$11.46m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-59.37m$155.08mOperating cash flow − capital expenditure
Operating margin5.0%14.3%Operating income ÷ revenue
Net margin-1.6%10.1%Net income ÷ revenue
Debt to equity1.48x0.73xTotal debt ÷ shareholders’ equity
Interest cover1.20x4.22xOperating income ÷ interest expense
Current ratio1.48x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital4.15x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-0.1%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion — 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 equity-5.1%-13.6%7.5%-20.5%0.5%-14.3%-5.3%12.4%9.4%9.4%-5.1%
Return on capital employed6.3%-1.0%6.7%-3.4%3.0%-4.4%0.6%7.6%7.1%7.5%3.0%
Operating margin5.0%-0.7%4.7%-2.5%2.5%-4.3%0.7%8.6%8.0%8.0%2.5%
Net margin-1.6%-3.3%2.1%-5.7%0.2%-5.8%-2.5%6.7%4.9%4.5%-1.6%
Debt to equity1.48x1.78x1.50x1.64x1.20x1.37x1.31x1.11x1.15x1.23x1.31x
Current ratio1.48x1.45x1.64x1.53x1.76x1.82x2.09x2.15x2.09x2.21x1.76x
Cash conversion2.02x1.37x2.01x2.10x2.02x