showing the working

← Silicon Motion Technology

The business behind the dividend

MeasureSIMOMedianFormula
Return on equity14.8%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$97.74m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$6.29m$155.08mOperating cash flow − capital expenditure
Operating margin10.5%14.3%Operating income ÷ revenue
Net margin13.8%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratio2.78x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.50x1.66xOperating cash flow ÷ net income
Accruals5.0%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Debt to equity, Long-term debt to working capital, Interest cover, 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 equity14.8%11.6%7.2%23.5%30.4%14.3%12.0%18.4%15.2%25.1%14.8%
Return on capital employed19.7%19.3%31.0%19.7%
Operating margin10.5%11.3%6.2%22.6%26.7%14.9%11.4%19.8%18.2%24.7%14.9%
Net margin13.8%11.1%8.3%18.2%21.7%14.8%14.1%18.5%14.3%19.9%14.3%
Debt to equity0.00x0.00x0.00x0.00x
Current ratio2.78x3.98x3.73x4.29x2.91x3.89x4.30x4.39x3.21x3.27x3.73x
Cash conversion0.50x0.86x2.82x0.49x0.87x1.47x1.21x1.10x1.39x1.13x1.10x