showing the working

← Smith & Wesson Brands

The business behind the dividend

MeasureSWBIMedianFormula
Return on equity4.9%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$26.04m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$90.45m$155.08mOperating cash flow − capital expenditure
Operating margin5.6%14.3%Operating income ÷ revenue
Net margin3.5%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest cover5.43x4.22xOperating income ÷ interest expense
Current ratio3.20x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion6.18x1.66xOperating cash flow ÷ net income
Accruals-18.7%-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.

Measure2026202520242023202220212020201920182017Median
Return on equity4.9%3.6%10.3%9.6%53.9%94.6%-15.8%4.1%4.8%32.5%4.9%
Operating margin5.6%5.0%8.8%10.1%29.1%30.2%9.5%9.0%4.5%22.1%9.0%
Net margin3.5%2.8%7.7%7.7%22.5%23.8%-11.6%3.8%3.3%14.2%3.8%
Current ratio3.20x4.16x3.04x3.35x3.68x2.13x3.03x2.68x2.69x2.11x3.03x
Cash conversion6.18x-0.54x2.58x0.45x0.71x1.25x3.10x3.06x0.97x1.25x

How it compares in industrials

Among the 289 industrials companies here measured on free cash flow, Smith & Wesson Brands pays out less than 133 of them. The median for that group is 24.4%, against this company’s 25.7%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 348 in industrials →