showing the working

← NexPoint Real Estate Finance

The business behind the dividend

MeasureNREFMedianFormula
Return on equity31.7%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$124.64m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$21.47m$155.08mOperating cash flow − capital expenditure
Operating marginOperating income ÷ revenue
Net marginNet income ÷ revenue
Debt to equity1.99x0.73xTotal 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 conversion0.19x1.66xOperating cash flow ÷ net income
Accruals1.9%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Current ratio, Interest cover, Net margin, 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.

Measure202520242023202220212020Median
Return on equity31.7%10.7%5.4%3.2%34.0%26.6%10.7%
Debt to equity1.99x2.38x3.66x3.01x5.20x8.10x3.01x
Cash conversion0.19x0.81x1.68x4.63x0.59x0.96x0.81x

How it compares in real estate

Among the 99 real estate companies here measured on funds from operations, NexPoint Real Estate Finance pays out less than 51 of them. The median for that group is 67.5%, against this company’s 66.6%.

Closest on funds from operations

Same sector and same denominator, so the figures are comparable. All 130 in real estate →