showing the working

← Natural Grocers by Vitamin Cottage

The business behind the dividend

MeasureNGVCMedianFormula
Return on equity21.9%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$47.06m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$24.10m$155.08mOperating cash flow − capital expenditure
Operating margin4.7%14.3%Operating income ÷ revenue
Net margin3.5%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest cover20.24x4.22xOperating income ÷ interest expense
Current ratio1.06x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.19x1.66xOperating cash flow ÷ net income
Accruals-1.3%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Debt to equity, Long-term debt to working capital, 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.

Measure2025202420232022202120202019201820172016Median
Return on equity21.9%19.5%13.6%13.7%14.4%11.6%6.0%8.6%5.1%9.1%11.6%
Return on capital employed27.0%17.7%17.6%17.0%16.0%17.6%
Operating margin4.7%3.8%2.8%2.8%2.7%2.7%1.9%1.8%1.8%2.9%2.7%
Net margin3.5%2.7%2.0%2.0%1.9%1.9%1.0%1.5%0.9%1.6%1.9%
Debt to equity0.00x0.05x0.10x0.17x0.00x0.05x
Current ratio1.06x0.90x0.99x1.02x1.01x1.11x1.38x1.39x1.51x1.46x1.06x
Cash conversion1.19x2.17x2.78x1.86x2.62x3.32x3.97x3.39x5.93x2.51x2.62x

How it compares in consumer staples

Among the 64 consumer staples companies here measured on free cash flow, Natural Grocers by Vitamin Cottage pays out less than 38 of them. The median for that group is 53.9%, against this company’s 45.7%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 72 in consumer staples →