showing the working

← Park Hotels & Resorts

The business behind the dividend

MeasurePKMedianFormula
Return on equity-9.0%10.6%Net income ÷ shareholders’ equity
Return on capital employed-0.5%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-243.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$102.00m$155.08mOperating cash flow − capital expenditure
Operating margin-1.3%14.3%Operating income ÷ revenue
Net margin-11.1%10.1%Net income ÷ revenue
Debt to equity1.23x0.73xTotal debt ÷ shareholders’ equity
Interest cover-0.16x4.22xOperating 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
Accruals-8.8%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio — 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-9.0%5.8%2.5%3.7%-10.3%-29.4%4.7%8.4%43.7%3.4%3.4%
Return on capital employed-0.5%5.2%4.5%3.3%-2.0%-12.0%4.1%5.9%4.1%4.1%
Operating margin-1.3%15.0%12.7%11.8%-13.1%-141.1%15.0%18.4%13.3%15.4%12.7%
Net margin-11.1%8.2%3.6%6.5%-33.7%-169.0%10.8%17.2%94.1%4.9%4.9%
Debt to equity1.23x1.06x0.99x1.07x1.06x1.05x0.60x0.53x0.49x1.05x
Cash conversion2.02x5.19x2.52x1.63x0.94x0.25x3.00x2.02x

How it compares in consumer discretionary

Among the 169 consumer discretionary companies here measured on free cash flow, Park Hotels & Resorts pays out less than 4 of them. The median for that group is 33.1%, against this company’s 274.5%.

Closest on free cash flow

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