showing the working

← National CineMedia

The business behind the dividend

MeasureNCMIMedianFormula
Return on equity-2.8%10.6%Net income ÷ shareholders’ equity
Return on capital employed-3.6%10.0%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flow$2.80m$155.08mOperating cash flow − capital expenditure
Operating margin-5.7%14.3%Operating income ÷ revenue
Net margin-4.4%10.1%Net income ÷ revenue
Debt to equity0.03x0.73xTotal debt ÷ shareholders’ equity
Interest cover-23.17x4.22xOperating income ÷ interest expense
Current ratio2.22x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital0.16x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-3.9%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Owner earnings — 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.

Measure2026202420232022202120202019201820172016Median
Return on equity-2.8%-5.4%162.3%-2.8%
Return on capital employed-3.6%-4.6%-6.1%0.4%-12.0%-10.5%29.5%27.8%27.4%30.6%-3.6%
Operating margin-5.7%-8.1%-16.5%2.8%-59.9%-67.5%36.3%35.0%36.1%38.7%-5.7%
Net margin-4.4%-9.3%-11.5%-42.5%-72.3%8.1%6.8%13.7%7.4%-4.4%
Debt to equity0.03x0.02x0.02x0.02x
Current ratio2.22x2.42x2.46x0.14x2.27x4.00x2.13x2.09x1.94x1.83x2.13x
Cash conversion-0.01x3.98x5.04x2.38x4.06x3.98x

How it compares in consumer discretionary

Among the 169 consumer discretionary companies here measured on free cash flow, National CineMedia pays out less than 0 of them. The median for that group is 33.1%, against this company’s 407.1%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →