showing the working

← RMR Group

The business behind the dividend

MeasureRMRMedianFormula
Return on equity7.7%10.6%Net income ÷ shareholders’ equity
Return on capital employed15.3%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-136.86m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-90.26m$155.08mOperating cash flow − capital expenditure
Operating margin22.9%14.3%Operating income ÷ revenue
Net margin9.6%10.1%Net income ÷ revenue
Debt to equity0.20x0.73xTotal debt ÷ shareholders’ equity
Interest cover9.70x4.22xOperating income ÷ interest expense
Current ratio1.64x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital0.60x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion4.30x1.66xOperating cash flow ÷ net income
Accruals-8.1%-3.1%(Net income − operating cash flow) ÷ total assets

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 equity7.7%9.7%23.8%16.5%18.3%9.7%25.8%41.3%28.3%30.6%18.3%
Return on capital employed15.3%15.9%47.4%15.9%
Operating margin22.9%23.2%48.2%44.2%11.9%11.7%27.7%62.2%49.9%55.0%27.7%
Net margin9.6%11.9%24.2%17.0%5.9%4.9%10.5%23.7%15.6%14.0%11.9%
Debt to equity0.20x0.19x0.00x0.19x
Current ratio1.64x2.20x3.66x2.78x3.14x5.58x5.03x10.46x5.33x4.64x3.66x
Cash conversion4.30x2.65x1.91x2.98x2.01x2.69x2.66x2.38x2.98x2.68x2.66x