showing the working

← Franklin Resources

The business behind the dividend

MeasureBENMedianFormula
Return on equity4.3%10.6%Net income ÷ shareholders’ equity
Return on capital employed4.2%10.0%Operating income ÷ (equity + total debt)
Owner earnings$495.70m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$911.60m$155.08mOperating cash flow − capital expenditure
Operating margin6.9%14.3%Operating income ÷ revenue
Net margin6.0%10.1%Net income ÷ revenue
Debt to equity0.20x0.73xTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-1.7%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Interest cover — 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.

Measure2025202420232022202120202019201820172016Median
Return on equity4.3%3.7%7.4%11.3%16.3%7.9%12.1%7.7%13.4%14.5%7.9%
Return on capital employed4.2%2.7%7.4%11.9%12.8%8.0%13.8%19.1%16.6%17.7%11.9%
Operating margin6.9%4.8%14.0%21.4%22.3%18.8%25.9%32.7%35.4%35.7%21.4%
Net margin6.0%5.5%11.2%15.6%21.7%14.4%21.1%12.3%26.5%26.1%14.4%
Debt to equity0.20x0.22x0.26x0.29x0.30x0.30x0.07x0.07x0.08x0.12x0.20x

How it compares in financial services

Among the 52 financial services companies here measured on free cash flow, Franklin Resources pays out less than 8 of them. The median for that group is 31.5%, against this company’s 75.0%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 67 in financial services →