showing the working

← Qfin Holdings

The business behind the dividend

MeasureQFINMedianFormula
Return on equity24.8%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$829.85m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$1.55bn$155.08mOperating cash flow − capital expenditure
Operating margin34.8%14.3%Operating income ÷ revenue
Net margin31.1%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
Accruals-9.0%-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, 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.

Measure20252024202320222021202020192018Median
Return on equity24.8%25.8%19.5%21.3%37.9%36.9%34.7%26.9%26.9%
Operating margin34.8%43.9%29.8%27.0%40.8%27.9%31.4%37.0%34.8%
Net margin31.1%36.4%26.2%24.2%34.7%25.8%27.1%26.8%27.1%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, Qfin Holdings pays out less than 257 of them. The median for that group is 30.6%, against this company’s 23.0%.

Closest on GAAP earnings

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