The business behind the dividend
| Measure | SFL | Median | Formula |
|---|---|---|---|
| Return on equity | -2.8% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 3.9% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 18.6% | 14.3% | Operating income ÷ revenue |
| Net margin | -3.6% | 10.1% | Net income ÷ revenue |
| Debt to equity | 2.67x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 0.76x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 0.36x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
| Accruals | -8.1% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Long-term debt to working capital, 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | -2.8% | 11.6% | 8.1% | 18.6% | 16.7% | -28.2% | 8.1% | 6.2% | 8.5% | 12.9% | 8.1% |
| Return on capital employed | 3.9% | 7.7% | 7.5% | 8.4% | 8.5% | -5.7% | 5.1% | 4.5% | 5.7% | 6.3% | 5.7% |
| Operating margin | 18.6% | 33.9% | 31.9% | 41.1% | 47.3% | -29.3% | 30.0% | 28.1% | 40.6% | 40.7% | 31.9% |
| Net margin | -3.6% | 14.4% | 11.2% | 30.2% | 32.0% | -47.6% | 19.4% | 17.6% | 26.6% | 35.5% | 17.6% |
| Debt to equity | 2.67x | 2.52x | 2.07x | 2.02x | 1.92x | 2.07x | 1.45x | 1.22x | 1.26x | 1.37x | 1.92x |
| Current ratio | 0.36x | 0.38x | 0.31x | 0.28x | 0.63x | 0.62x | 1.07x | 1.02x | 0.92x | 1.17x | 0.62x |
| Cash conversion | — | 2.83x | 4.09x | 1.75x | 1.79x | — | 2.80x | 2.73x | 1.76x | 1.57x | 2.73x |
How it compares in industrials
Among the 16 industrials companies here measured on operating cash flow, SFL pays out less than 5 of them. The median for that group is 28.0%, against this company’s 46.8%.
Closest on operating cash flow
- Safe Bulkers (SB) 28.0%
- Alibaba Group Holding (BABA) 44.3%
- Dorian LPG (LPG) 50.0%
- Himalaya Shipping (HSHP) 52.0%
Same sector and same denominator, so the figures are comparable. All 348 in industrials →