showing the working

← Ready Capital

The business behind the dividend

MeasureRCMedianFormula
Return on equity-14.3%10.6%Net income ÷ shareholders’ equity
Return on capital employed-10.4%10.0%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating margin-53.2%14.3%Operating income ÷ revenue
Net margin-38.8%10.1%Net income ÷ revenue
Debt to equity0.89x0.73xTotal debt ÷ shareholders’ equity
Interest cover-0.62x4.22xOperating 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-8.4%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Free cash flow, Owner earnings — 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-14.3%-23.4%13.7%11.3%12.5%5.5%8.8%10.9%8.1%9.6%8.8%
Return on capital employed-10.4%-16.3%9.8%6.0%6.1%4.3%5.1%5.1%
Operating margin-53.2%-57.6%37.9%26.4%33.4%21.1%28.1%26.4%
Net margin-38.8%-48.0%36.8%30.6%40.5%17.3%31.7%35.0%31.3%35.9%31.3%
Debt to equity0.89x0.73x0.44x0.63x0.70x0.54x0.53x0.62x0.01x0.01x0.54x
Cash conversion0.15x1.77x-0.22x1.54x-0.72x2.37x8.14x0.34x1.54x

How it compares in real estate

Among the 20 real estate companies here measured on operating cash flow, Ready Capital pays out less than 18 of them. The median for that group is 152.3%, against this company’s 26.2%.

Closest on operating cash flow

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