The business behind the dividend
| Measure | TNL | Median | Formula |
|---|---|---|---|
| Return on equity | — | — | Net income ÷ shareholders’ equity |
| Return on capital employed | 12.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $237.00m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $523.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 13.8% | 15.0% | Operating income ÷ revenue |
| Net margin | 5.7% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 2.38x | 4.43x | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.78x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Current ratio, Debt to equity, 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | — | — | — | — | — | — | — | — | 111.1% | 85.6% | 85.6% |
| Return on capital employed | 12.0% | 15.6% | 15.2% | 13.8% | 13.7% | -1.9% | 16.1% | 29.1% | 14.5% | 20.7% | 14.5% |
| Operating margin | 13.8% | 19.0% | 19.2% | 18.3% | 19.7% | -4.9% | 20.1% | 13.3% | 11.5% | 17.8% | 17.8% |
| Net margin | 5.7% | 10.6% | 10.6% | 10.0% | 9.8% | -11.8% | 12.5% | 17.1% | 22.4% | 16.5% | 10.6% |
| Debt to equity | — | — | — | — | — | — | — | — | 2.93x | 3.45x | 2.93x |
| Current ratio | — | — | — | — | — | — | — | — | 1.17x | 0.89x | 0.89x |
| Cash conversion | 2.78x | 1.13x | 0.88x | 1.24x | 1.84x | — | 0.89x | 0.66x | 1.15x | 1.58x | 1.15x |
How it compares in consumer discretionary
Among the 44 consumer discretionary companies here measured on free cash flow, Travel & Leisure pays out less than 30 of them. The median for that group is 37.5%, against this company’s 28.5%.
Closest on free cash flow
- Marriott International (MAR) 27.5%
- Costco Wholesale (COST) 27.9%
- Ralph Lauren (RL) 29.0%
- Sherwin Williams (SHW) 29.8%
Same sector and same denominator, so the figures are comparable. All 48 in consumer discretionary →