showing the working

← Newell Brands

The business behind the dividend

MeasureNWLMedianFormula
Return on equity-11.9%10.6%Net income ÷ shareholders’ equity
Return on capital employed0.6%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-221.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$17.00m$155.08mOperating cash flow − capital expenditure
Operating margin0.5%14.3%Operating income ÷ revenue
Net margin-4.0%10.1%Net income ÷ revenue
Debt to equity1.95x0.73xTotal debt ÷ shareholders’ equity
Interest cover0.11x4.22xOperating income ÷ interest expense
Current ratio1.07x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital24.83x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-5.1%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion — 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 equity-11.9%-7.9%-12.5%5.6%15.0%-19.8%2.2%-133.0%19.4%4.7%-7.9%
Return on capital employed0.6%0.9%-1.1%3.5%11.2%-6.6%-4.5%-61.7%2.9%1.3%0.6%
Operating margin0.5%0.9%-1.0%3.3%9.6%-6.7%-5.0%-74.4%6.3%3.2%0.5%
Net margin-4.0%-2.8%-4.8%2.1%5.9%-8.2%1.1%-68.4%24.6%5.7%-2.8%
Debt to equity1.95x1.67x1.58x1.53x1.18x1.45x1.15x1.34x0.75x1.05x1.34x
Current ratio1.07x1.14x1.16x1.32x1.31x1.28x1.38x1.80x2.19x1.74x1.31x
Cash conversion-1.38x1.42x9.76x0.35x3.49x1.42x