The business behind the dividend
| Measure | TKO | Median | Formula |
|---|---|---|---|
| Return on equity | 5.2% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.1% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 17.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 4.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.01x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 4.12x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.26x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 7.73x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 6.58x | 1.78x | Operating 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | Median |
|---|---|---|---|---|---|---|
| Return on equity | 5.2% | 0.2% | -0.9% | 68.4% | 21.9% | 5.2% |
| Return on capital employed | 11.1% | 0.5% | 5.5% | 16.4% | — | 11.1% |
| Operating margin | 17.6% | 0.6% | 11.7% | 47.7% | 37.9% | 17.6% |
| Net margin | 4.1% | 0.2% | -1.1% | 34.1% | 26.5% | 4.1% |
| Debt to equity | 1.01x | 0.68x | 0.67x | 4.85x | — | 1.01x |
| Current ratio | 1.26x | 1.08x | 1.04x | 1.17x | — | 1.17x |
| Cash conversion | 6.58x | — | — | 1.29x | 1.61x | 1.61x |