The business behind the dividend
| Measure | TWO-PC | Median | Formula |
|---|---|---|---|
| Return on equity | -25.4% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | -4.3% | 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 | -108.1% | 14.3% | Operating income ÷ revenue |
| Net margin | -110.3% | 10.1% | Net income ÷ revenue |
| Debt to equity | 4.79x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | -0.91x | 4.22x | Operating income ÷ interest expense |
| Current ratio | — | — | 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 | -5.0% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Current ratio, 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 | -25.4% | 14.0% | -4.8% | 10.1% | 6.8% | -52.8% | 6.5% | -1.0% | 9.8% | 10.4% | 6.5% |
| Return on capital employed | -4.3% | 16.2% | — | — | — | — | 5.8% | -0.1% | — | — | 5.8% |
| Operating margin | -108.1% | 76.6% | -17.4% | — | — | -317.3% | 31.2% | -0.3% | 40.0% | 57.4% | 31.2% |
| Net margin | -110.3% | 66.2% | -22.1% | 74.5% | — | -310.5% | 32.6% | -5.1% | 46.8% | 61.4% | 32.6% |
| Debt to equity | 4.79x | 0.00x | — | — | — | — | 0.08x | 0.00x | — | — | 0.08x |
| Cash conversion | — | 0.67x | — | 2.83x | 2.26x | — | 3.26x | — | 1.74x | 0.68x | 1.74x |
How it compares in real estate
Among the 20 real estate companies here measured on operating cash flow, TWO Harbors Investment pays out less than 7 of them. The median for that group is 152.3%, against this company’s 192.2%.
Closest on operating cash flow
- Ares Commercial Real Estate (ACRE) 182.7%
- MFA Financial (MFA) 194.4%
- Dynex Capital (DX) 204.1%
- Armour Residential REIT (ARR) 218.5%
Same sector and same denominator, so the figures are comparable. All 130 in real estate →