The business behind the dividend
| Measure | VHI | Median | Formula |
|---|---|---|---|
| Return on equity | -5.6% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 3.9% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-37.80m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-82.10m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 3.0% | 14.3% | Operating income ÷ revenue |
| Net margin | -2.8% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.58x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 1.11x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 2.80x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.73x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
| Accruals | -0.8% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion — 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 | -5.6% | 10.4% | -1.0% | 9.1% | 15.3% | 8.1% | 7.7% | 41.3% | 48.9% | -7.9% | 8.1% |
| Return on capital employed | 3.9% | 13.9% | 2.3% | 15.8% | 21.5% | 12.7% | 13.5% | 25.9% | 25.9% | 10.9% | 13.5% |
| Operating margin | 3.0% | 10.0% | 1.8% | 10.8% | 13.9% | 10.1% | 10.2% | 20.4% | 20.2% | 7.8% | 10.1% |
| Net margin | -2.8% | 5.1% | -0.5% | 3.9% | 5.5% | 3.0% | 2.6% | 14.4% | 11.0% | -1.0% | 3.0% |
| Debt to equity | 0.58x | 0.47x | 0.57x | 0.58x | 0.78x | 1.15x | 1.23x | 1.26x | 2.45x | 4.43x | 0.78x |
| Current ratio | 2.80x | 2.26x | 2.91x | 3.23x | 3.61x | 4.57x | 4.42x | 4.01x | 3.81x | 2.85x | 3.23x |
| Cash conversion | — | 0.41x | — | 0.40x | 3.61x | 2.76x | 3.60x | 0.63x | 1.25x | — | 1.25x |