vvincii we show the working

← Optimum Communications

The business behind the dividend

MeasureOPTUMedianFormula
Return on equity0.5%11.7%Net income ÷ shareholders’ equity
Return on capital employed6.4%10.1%Operating income ÷ (equity + total debt)
Owner earnings$1.25bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$1.35bn$746.10mOperating cash flow − capital expenditure
Operating margin17.6%15.0%Operating income ÷ revenue
Net margin0.2%10.2%Net income ÷ revenue
Debt to equity6.21x0.79xTotal debt ÷ shareholders’ equity
Interest cover1.08x4.43xOperating income ÷ interest expense
Current ratio0.45x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income

Not computed here: Long-term debt to working capital — 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 equity6.1%0.5%27.1%-41.0%6.1%
Return on capital employed-0.5%6.8%6.9%6.9%9.8%8.3%6.8%6.4%3.9%12.2%6.8%
Operating margin-1.3%18.8%18.4%18.7%25.0%21.4%18.7%17.6%9.0%7.7%18.4%
Net margin-21.8%-1.1%0.6%2.0%9.8%4.4%1.4%0.2%16.0%-13.8%0.6%
Debt to equity10.76x6.21x2.88x0.86x6.21x
Current ratio0.80x0.32x0.36x0.64x0.29x0.32x0.70x0.45x0.36x0.46x0.36x
Cash conversion34.33x12.17x2.88x6.83x18.38x1.35x6.83x

How it compares in communications

Among the 25 communications companies here measured on free cash flow, Optimum Communications pays out less than 1 of them. The median for that group is 28.4%, against this company’s 110.7%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 31 in communications →