The business behind the dividend
| Measure | SCE-PM | Median | Formula |
|---|---|---|---|
| Return on equity | 10.9% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.3% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-861.00m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | — | — | Operating income ÷ revenue |
| Net margin | — | — | Net income ÷ revenue |
| Debt to equity | 0.89x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 4.59x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 0.68x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 3.01x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -5.4% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Long-term debt to working capital, Net margin, Operating margin, 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.
| Measure | 2011 | 2010 | 2009 | 2008 | 2007 | Median |
|---|---|---|---|---|---|---|
| Return on equity | 10.9% | 11.3% | 14.1% | 8.7% | 9.3% | 10.9% |
| Return on capital employed | 11.3% | 11.1% | 12.4% | 11.7% | — | 11.7% |
| Debt to equity | 0.89x | 0.83x | 0.77x | 0.81x | — | 0.83x |
| Current ratio | 0.68x | 0.74x | 0.76x | 0.73x | — | 0.74x |
| Cash conversion | 3.01x | 3.26x | 3.32x | 2.37x | 4.21x | 3.26x |