The business behind the dividend
| Measure | NDAQ | Median | Formula |
|---|---|---|---|
| Return on equity | 14.6% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.0% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.67bn | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.99bn | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 28.2% | 14.3% | Operating income ÷ revenue |
| Net margin | 21.6% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.74x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 1.01x | 1.55x | 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 | -1.5% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 14.6% | 10.0% | 9.8% | 18.3% | 18.6% | 14.5% | 13.7% | 8.4% | 12.4% | 2.0% | 12.4% |
| Return on capital employed | 11.0% | 8.7% | 7.4% | 13.5% | 11.8% | 10.3% | 11.3% | 11.1% | 9.8% | 9.3% | 10.3% |
| Operating margin | 28.2% | 24.3% | 26.0% | 25.1% | 24.5% | 21.9% | 23.9% | 24.0% | 25.1% | 22.6% | 24.3% |
| Net margin | 21.6% | 15.1% | 17.5% | 18.1% | 20.2% | 16.6% | 18.2% | 10.7% | 18.5% | 2.9% | 17.5% |
| Debt to equity | 0.74x | 0.85x | 0.97x | 0.88x | 0.91x | 0.86x | 0.60x | 0.70x | 0.72x | 0.66x | 0.74x |
| Current ratio | 1.01x | 0.99x | 1.01x | 0.97x | 0.94x | 1.56x | 1.01x | 0.97x | 1.05x | 1.12x | 1.01x |
How it compares in financial services
Among the 52 financial services companies here measured on free cash flow, Nasdaq pays out less than 26 of them. The median for that group is 31.5%, against this company’s 30.2%.
Closest on free cash flow
- TWFG (TWFG) 29.8%
- Hennessy Advisors (HNNA) 31.5%
- Marsh & Mclennan Companies (MMC) 34.0%
- Marsh & Mclennan Companies (MRSH) 34.0%
Same sector and same denominator, so the figures are comparable. All 67 in financial services →