showing the working

← Spok Holdings

The business behind the dividend

MeasureSPOKMedianFormula
Return on equity10.8%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$15.56m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$25.20m$155.08mOperating cash flow − capital expenditure
Operating margin14.1%14.3%Operating income ÷ revenue
Net margin11.4%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratio1.18x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.82x1.66xOperating cash flow ÷ net income
Accruals-6.3%-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 equity10.8%9.7%9.6%12.8%-12.8%-22.2%-4.3%-0.5%-5.3%4.3%-0.5%
Operating margin14.1%13.8%15.3%0.2%-19.5%-15.3%-9.9%-1.9%6.3%12.3%0.2%
Net margin11.4%10.9%11.3%16.2%-15.6%-29.8%-6.7%-0.9%-8.9%7.8%-0.9%
Current ratio1.18x1.26x1.33x1.29x1.71x2.07x2.30x2.91x2.99x2.77x1.71x
Cash conversion1.82x1.93x1.67x0.30x2.69x1.82x

How it compares in communications

Among the 33 communications companies here measured on free cash flow, Spok Holdings pays out less than 3 of them. The median for that group is 30.4%, against this company’s 108.2%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 43 in communications →