The business behind the dividend
| Measure | VNOM | Median | Formula |
|---|---|---|---|
| Return on equity | -1.5% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | -2.1% | 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 | -10.4% | 15.0% | Operating income ÷ revenue |
| Net margin | -5.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.49x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | -2.00x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 3.72x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 7.24x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Not computed here: Cash conversion, 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 | Median |
|---|---|---|---|---|
| Return on equity | -1.5% | 21.3% | 7.0% | 7.0% |
| Return on capital employed | -2.1% | 20.5% | — | -2.1% |
| Operating margin | -10.4% | 66.4% | 86.5% | 66.4% |
| Net margin | -5.1% | 42.0% | 27.9% | 27.9% |
| Debt to equity | 0.49x | 0.64x | — | 0.49x |
| Current ratio | 3.72x | 4.86x | — | 3.72x |
| Cash conversion | — | 1.73x | 3.19x | 1.73x |