vvincii we show the working

← Dominos Pizza

The business behind the dividend

MeasureDPZMedianFormula
Return on equityNet income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$569.97m$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$671.50m$746.10mOperating cash flow − capital expenditure
Operating margin19.3%15.0%Operating income ÷ revenue
Net margin12.2%10.2%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest cover4.87x4.43xOperating income ÷ interest expense
Current ratio1.65x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital0.04x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.32x1.78xOperating cash flow ÷ net income

Not computed here: Debt to equity, Return on capital employed, Return on equity — 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.

Measure2025202420232023202220212019201820172017Median
Return on capital employed94.9%98.7%96.9%89.0%96.0%125.4%135.0%170.8%98.7%
Operating margin19.3%18.7%18.3%16.9%17.9%17.6%17.4%16.7%18.7%18.4%17.9%
Net margin12.2%12.4%11.6%10.0%11.7%11.9%11.1%10.5%10.0%8.7%11.1%
Current ratio1.65x0.56x1.49x1.47x1.46x1.85x1.74x1.49x1.46x1.23x1.47x
Cash conversion1.32x1.07x1.14x1.05x1.28x1.21x1.24x1.09x1.23x1.36x1.21x

How it compares in consumer staples

Among the 38 consumer staples companies here measured on free cash flow, Dominos Pizza pays out less than 31 of them. The median for that group is 65.1%, against this company’s 35.3%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →