showing the working

← Nelnet

The business behind the dividend

MeasureNNIMedianFormula
Return on equity11.6%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$492.86m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$396.75m$155.08mOperating cash flow − capital expenditure
Operating marginOperating income ÷ revenue
Net margin50.3%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals0.0%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Operating margin, 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 equity11.6%5.5%2.8%12.7%13.3%13.4%5.9%9.9%8.1%12.5%9.9%
Operating margin23.5%6.2%67.6%95.9%72.7%18.6%31.0%29.4%52.4%31.0%
Net margin50.3%18.9%8.1%54.8%75.1%56.9%14.9%24.7%22.5%33.7%24.7%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, Nelnet pays out less than 351 of them. The median for that group is 30.6%, against this company’s 10.0%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →