showing the working

← First Financial Bankshares

The business behind the dividend

MeasureFFINMedianFormula
Return on equity13.2%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$253.79m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$286.01m$155.08mOperating cash flow − capital expenditure
Operating margin44.1%14.3%Operating income ÷ revenue
Net margin36.1%10.1%Net income ÷ revenue
Debt to equityTotal 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-0.3%-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, Interest cover, 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.

Measure2025202420232022202120202019201820172016Median
Return on equity13.2%13.9%13.3%18.5%12.9%12.0%13.4%14.3%13.0%12.5%13.2%
Operating margin44.1%43.2%46.1%64.9%72.3%66.6%62.0%61.1%59.8%58.5%59.8%
Net margin36.1%35.5%37.7%54.2%60.5%55.5%51.6%51.6%48.9%45.1%48.9%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, First Financial Bankshares pays out less than 105 of them. The median for that group is 30.6%, against this company’s 42.4%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →