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← Insteel Industries

The business behind the dividend

MeasureIIINMedianFormula
Return on equity11.0%11.7%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$51.20m$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$18.95m$746.10mOperating cash flow − capital expenditure
Operating margin8.3%15.0%Operating income ÷ revenue
Net margin6.3%10.2%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratio3.97x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.66x1.78xOperating cash flow ÷ net income

Not computed here: Debt to equity, Long-term debt to working capital, Return on capital employed — 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 equity11.0%5.5%8.5%32.1%22.1%7.2%2.3%15.0%10.1%16.6%10.1%
Operating margin8.3%4.8%6.4%19.6%14.6%5.1%1.6%9.4%8.8%13.4%8.3%
Net margin6.3%3.6%5.0%15.1%11.3%4.0%1.2%8.0%5.8%8.9%5.8%
Current ratio3.97x5.68x6.47x5.36x3.59x3.67x5.65x2.72x3.79x3.36x3.79x
Cash conversion0.66x3.02x4.39x0.05x1.05x2.96x1.18x1.49x0.92x1.51x1.18x

How it compares in materials

Among the 35 materials companies here measured on free cash flow, Insteel Industries pays out less than 4 of them. The median for that group is 40.8%, against this company’s 114.8%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 47 in materials →