The business behind the dividend
| Measure | MFA | Median | Formula |
|---|---|---|---|
| Return on equity | 9.7% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 23.6% | 14.3% | Operating income ÷ revenue |
| Net margin | 23.7% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 0.35x | 4.22x | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.43x | 1.66x | Operating cash flow ÷ net income |
| Accruals | 0.8% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Current ratio, Debt to equity, Free cash flow, 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.7% | 6.5% | 4.2% | -11.6% | 12.9% | -26.9% | 11.2% | 8.8% | 9.9% | 10.3% | 8.8% |
| Operating margin | 23.6% | 16.5% | 13.3% | -48.2% | — | — | — | — | — | — | 16.5% |
| Net margin | 23.7% | 16.5% | 13.2% | -48.0% | 90.8% | -157.0% | 54.3% | 66.2% | 74.4% | 68.4% | 23.7% |
| Debt to equity | — | — | — | — | — | — | 0.03x | 0.03x | 0.03x | 0.03x | 0.03x |
| Cash conversion | 0.43x | 1.68x | 1.36x | — | 0.42x | — | 0.57x | 0.49x | 0.55x | 0.57x | 0.57x |
How it compares in real estate
Among the 20 real estate companies here measured on operating cash flow, MFA Financial pays out less than 6 of them. The median for that group is 152.3%, against this company’s 194.4%.
Closest on operating cash flow
- Ares Commercial Real Estate (ACRE) 182.7%
- TWO Harbors Investment (TWO-PC) 192.2%
- Dynex Capital (DX) 204.1%
- Armour Residential REIT (ARR) 218.5%
Same sector and same denominator, so the figures are comparable. All 130 in real estate →