vvincii we show the working

← Royalty Pharma

The business behind the dividend

MeasureRPRXMedianFormula
Return on equity7.9%11.7%Net income ÷ shareholders’ equity
Return on capital employed8.4%10.1%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating margin65.6%15.0%Operating income ÷ revenue
Net margin32.4%10.2%Net income ÷ revenue
Debt to equity0.92x0.79xTotal debt ÷ shareholders’ equity
Interest cover5.07x4.43xOperating income ÷ interest expense
Current ratio2.40x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital9.61x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversion3.23x1.78xOperating cash flow ÷ net income

Not computed here: Free cash flow, Owner earnings — 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.

Measure20252024202320222021202020192018Median
Return on equity7.9%8.3%11.3%0.4%6.0%9.9%38.2%30.3%9.9%
Return on capital employed8.4%7.2%9.2%1.8%8.2%10.2%21.2%8.4%
Operating margin65.6%57.1%63.4%13.7%62.5%75.2%76.0%63.4%
Net margin32.4%37.9%48.2%1.9%27.1%45.9%76.8%37.9%
Debt to equity0.92x0.74x0.61x0.75x0.69x0.59x1.02x0.74x
Current ratio2.40x1.44x7.90x2.19x16.81x8.76x2.50x2.50x
Cash conversion3.23x3.22x2.63x3.26x2.09x0.71x1.17x2.63x