vvincii we show the working

← Horton D R

The business behind the dividend

MeasureDHIMedianFormula
Return on equity14.8%11.7%Net income ÷ shareholders’ equity
Return on capital employed15.7%10.1%Operating income ÷ (equity + total debt)
Owner earnings$3.55bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$3.28bn$746.10mOperating cash flow − capital expenditure
Operating margin13.8%15.0%Operating income ÷ revenue
Net margin10.5%10.2%Net income ÷ revenue
Debt to equity0.25x0.79xTotal debt ÷ shareholders’ equity
Interest cover19.61x4.43xOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.95x1.78xOperating cash flow ÷ net income

Not computed here: Current ratio — 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 equity14.8%18.8%20.9%30.2%28.1%20.0%16.2%16.3%13.4%13.0%16.3%
Return on capital employed15.7%20.1%22.7%30.0%26.4%18.5%15.8%16.9%15.1%13.4%16.9%
Operating margin13.8%17.1%17.8%22.8%19.3%14.7%12.1%12.8%11.4%11.1%13.8%
Net margin10.5%12.9%13.4%17.5%15.0%11.7%9.2%9.1%7.4%7.3%10.5%
Debt to equity0.25x0.23x0.22x0.31x0.36x0.36x0.34x0.36x0.37x0.48x0.34x
Cash conversion0.95x0.46x0.91x0.10x0.13x0.60x0.55x0.37x0.42x0.70x0.46x

How it compares in industrials

Among the 74 industrials companies here measured on free cash flow, Horton D R pays out less than 54 of them. The median for that group is 28.1%, against this company’s 15.1%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 81 in industrials →