The business behind the dividend
| Measure | BFH | Median | Formula |
|---|---|---|---|
| Return on equity | 15.6% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 16.0% | 14.3% | Operating income ÷ revenue |
| Net margin | 13.5% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | 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 | — | — | Operating cash flow ÷ net income |
| Accruals | -6.9% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Free cash flow, Interest cover, Owner earnings, Return on capital employed — 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 | 15.6% | 9.1% | 24.6% | 9.8% | 38.4% | 14.1% | 17.5% | 41.3% | 42.5% | 31.2% | 17.5% |
| Operating margin | 16.0% | 9.9% | 22.6% | 7.8% | 31.9% | 52.1% | 78.8% | — | 27.7% | 17.7% | 22.6% |
| Net margin | 13.5% | 7.2% | 16.7% | 5.8% | 24.5% | 37.1% | 33.1% | — | 14.4% | 7.3% | 14.4% |
How it compares in banks & insurers
Among the 377 banks & insurers companies here measured on GAAP earnings, Bread Financial Holdings pays out less than 357 of them. The median for that group is 30.6%, against this company’s 7.9%.
Closest on GAAP earnings
- HCI Group (HCI) 7.0%
- Globe Life (GL) 7.7%
- Firstsun Capital Bancorp (FSUN) 7.8%
- Red River Bancshares (RRBI) 8.5%
Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →