showing the working

← Mercer International

The business behind the dividend

MeasureMERCMedianFormula
Return on equity-731.5%10.6%Net income ÷ shareholders’ equity
Return on capital employed-23.8%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-426.42m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-80.00m$155.08mOperating cash flow − capital expenditure
Operating margin-21.3%14.3%Operating income ÷ revenue
Net margin-26.7%10.1%Net income ÷ revenue
Debt to equity23.58x0.73xTotal debt ÷ shareholders’ equity
Interest cover-3.46x4.22xOperating income ÷ interest expense
Current ratio3.05x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital2.76x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-24.8%-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-731.5%-19.8%-38.1%29.5%24.6%-2.9%-1.8%22.1%12.8%9.2%-1.8%
Return on capital employed-23.8%0.8%-8.4%18.0%17.9%3.6%5.1%16.5%11.2%11.6%5.1%
Operating margin-21.3%0.7%-9.5%17.2%19.2%4.5%5.2%18.4%14.4%12.4%5.2%
Net margin-26.7%-4.2%-12.1%10.8%9.5%-1.2%-0.6%8.8%6.0%3.8%-0.6%
Debt to equity23.58x3.43x2.53x1.61x1.78x1.97x1.98x1.79x1.74x1.63x1.79x
Current ratio3.05x3.55x3.82x3.12x3.76x4.13x3.30x4.15x1.98x4.31x3.55x
Cash conversion1.46x1.07x1.84x2.01x4.03x1.84x