Is the business good?
How good a business is RIO?
Rio Tinto Group earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 6.8 points above what the capital costs: growth creates value
- Operating margin
- 26%
Operating margin · Other Industrial Metals & Mining median 19% · fiscal year to FY2025
- Cash conversion
- 0.39×
Cash conversion · 0.54× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.28%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 38% |
| FY2021 | 47% |
| FY2022 | 36% |
| FY2023 | 27% |
| FY2024 | 29% |
| FY2025 | 26% |
Details›
- Gross marginfiscal year to FY2025
- 77%
- Operating marginfiscal year to FY2025
- 26%
- Net marginfiscal year to FY2025
- 17%
- Free cash flow margin
- 6.8%
- R&D as % of revenue
- 0.91%
- Revenue, trailing twelve months
- $57.6B
- Free cash flow, trailing twelve months
- $3.91B
- Net income, trailing twelve months
- $9.97B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Other Industrial Metals & Mining
The closest names by size in the same industry