vvincii we show the working

← DOW

The business behind the dividend

MeasureDOWMedianFormula
Return on equity-15.3%11.7%Net income ÷ shareholders’ equity
Return on capital employed-7.4%10.1%Operating income ÷ (equity + total debt)
Owner earnings$-2.09bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-1.45bn$746.10mOperating cash flow − capital expenditure
Operating margin-6.3%15.0%Operating income ÷ revenue
Net margin-6.1%10.2%Net income ÷ revenue
Debt to equity1.12x0.79xTotal debt ÷ shareholders’ equity
Interest cover-2.90x4.43xOperating income ÷ interest expense
Current ratio1.97x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital2.01x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income

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.

Measure202520242023202220212020201920182017Median
Return on equity-15.3%6.9%3.5%22.4%35.3%10.4%-9.4%14.7%1.9%6.9%
Return on capital employed-7.4%4.8%2.0%17.0%24.9%7.0%-4.2%7.2%7.0%
Operating margin-6.3%3.7%1.5%10.7%14.8%5.4%-2.9%7.6%0.5%3.7%
Net margin-6.1%2.8%1.5%8.2%11.7%3.4%-3.0%9.6%1.4%2.8%
Debt to equity1.12x0.91x0.80x0.73x0.80x1.36x1.21x0.60x0.91x
Current ratio1.97x1.61x1.77x1.81x1.58x1.72x1.57x2.53x1.77x
Cash conversion2.43x7.87x1.61x1.09x4.81x0.89x-8.28x1.61x