The business behind the dividend
| Measure | RLX | Median | Formula |
|---|---|---|---|
| Return on equity | 5.9% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $119.41m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $141.11m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 8.3% | 14.3% | Operating income ÷ revenue |
| Net margin | 23.3% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 51.40x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 5.70x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.20x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -1.0% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Debt to equity, Long-term debt to working capital, 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | Median |
|---|---|---|---|---|---|---|---|
| Return on equity | 5.9% | 3.5% | 3.4% | 9.3% | 15.0% | -8.5% | 3.5% |
| Operating margin | 8.3% | -3.9% | -31.3% | 19.9% | 27.0% | 0.3% | 0.3% |
| Net margin | 23.3% | 20.1% | 33.7% | 27.0% | 23.8% | -3.4% | 23.3% |
| Current ratio | 5.70x | 10.84x | 13.44x | 14.18x | 5.10x | 1.55x | 5.70x |
| Cash conversion | 1.20x | 1.55x | 0.37x | 0.34x | 0.89x | — | 0.89x |
How it compares in consumer staples
Among the 64 consumer staples companies here measured on free cash flow, RLX Technology pays out less than 61 of them. The median for that group is 53.9%, against this company’s 9.3%.
Closest on free cash flow
- Amcon Distributing (DIT) 6.7%
- Alico (ALCO) 10.5%
- Turning Point Brands (TPB) 12.6%
- Coca-Cola Consolidated (COKE) 14.0%
Same sector and same denominator, so the figures are comparable. All 72 in consumer staples →