showing the working

← Wesco International

The business behind the dividend

MeasureWCCMedianFormula
Return on equity12.7%10.6%Net income ÷ shareholders’ equity
Return on capital employed11.4%10.0%Operating income ÷ (equity + total debt)
Owner earnings$738.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$25.20m$155.08mOperating cash flow − capital expenditure
Operating margin5.2%14.3%Operating income ÷ revenue
Net margin2.7%10.1%Net income ÷ revenue
Debt to equity1.15x0.73xTotal debt ÷ shareholders’ equity
Interest cover3.45x4.22xOperating income ÷ interest expense
Current ratio2.20x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital1.12x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.20x1.66xOperating cash flow ÷ net income
Accruals3.1%-3.1%(Net income − operating cash flow) ÷ total assets

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 equity12.7%14.4%15.2%19.3%12.3%3.0%9.9%10.6%7.7%5.2%10.6%
Return on capital employed11.4%12.2%13.6%14.6%9.4%4.2%9.8%10.6%9.3%9.9%9.9%
Operating margin5.2%5.6%6.3%6.7%4.4%2.8%4.1%4.3%4.2%4.5%4.4%
Net margin2.7%3.3%3.4%4.0%2.6%0.8%2.7%2.8%2.1%1.4%2.7%
Debt to equity1.15x1.02x1.06x1.22x1.25x1.47x0.57x0.56x0.62x0.69x1.02x
Current ratio2.20x2.20x2.48x2.18x2.08x1.84x2.34x2.25x2.31x2.41x2.20x
Cash conversion0.20x1.53x0.64x0.01x0.14x5.41x1.00x1.31x0.91x2.96x0.91x

How it compares in industrials

Among the 289 industrials companies here measured on free cash flow, Wesco International pays out less than 3 of them. The median for that group is 24.4%, against this company’s 350.8%.

Closest on free cash flow

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