showing the working

← Reserve Petroleum

The business behind the dividend

MeasureRSRVMedianFormula
Return on equity14.4%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$-8.61m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-3.54m$155.08mOperating cash flow − capital expenditure
Operating margin25.7%14.3%Operating income ÷ revenue
Net margin29.1%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest cover66.69x4.22xOperating income ÷ interest expense
Current ratio4.49x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion2.04x1.66xOperating cash flow ÷ net income
Accruals-12.2%-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.

Measure2025202420232022202120202019201820172016Median
Return on equity14.4%6.5%-0.3%12.4%4.2%-6.7%-0.8%6.9%2.1%-0.3%2.1%
Operating margin25.7%14.9%-10.2%43.2%7.3%-79.0%-15.5%25.2%-8.5%7.3%
Net margin29.1%13.1%-0.7%26.9%13.9%-49.0%-4.1%29.8%11.2%13.1%
Current ratio4.49x13.22x18.46x26.55x40.07x81.71x70.46x88.50x40.07x
Cash conversion2.04x3.99x2.16x3.02x2.09x4.04x2.16x