showing the working

← Southern Copper Corp/

The business behind the dividend

MeasureSCCOMedianFormula
Return on equity39.4%10.6%Net income ÷ shareholders’ equity
Return on capital employed39.4%10.0%Operating income ÷ (equity + total debt)
Owner earnings$3.89bn$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$3.43bn$155.08mOperating cash flow − capital expenditure
Operating margin52.2%14.3%Operating income ÷ revenue
Net margin32.4%10.1%Net income ÷ revenue
Debt to equity0.61x0.73xTotal debt ÷ shareholders’ equity
Interest cover18.04x4.22xOperating income ÷ interest expense
Current ratio3.89x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital1.09x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.09x1.66xOperating cash flow ÷ net income
Accruals-1.9%-3.1%(Net income − operating cash flow) ÷ total assets

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 equity39.4%36.9%32.8%32.8%41.9%21.8%21.9%23.6%12.0%13.4%23.6%
Return on capital employed39.4%36.0%30.7%30.9%41.3%22.7%20.0%23.0%21.7%13.3%23.0%
Operating margin52.2%48.6%42.4%44.1%55.5%39.1%37.8%40.6%39.4%29.1%40.6%
Net margin32.4%29.6%24.6%26.4%31.2%19.8%20.5%21.8%11.0%14.5%21.8%
Debt to equity0.61x0.68x0.84x0.77x0.80x0.91x1.02x0.91x0.98x1.02x0.84x
Current ratio3.89x2.75x3.19x4.20x2.73x3.48x2.83x2.61x2.71x2.57x2.75x
Cash conversion1.09x1.30x1.47x1.06x1.26x1.76x1.28x1.44x2.70x1.19x1.28x

How it compares in materials

Among the 79 materials companies here measured on free cash flow, Southern Copper Corp/ pays out less than 20 of them. The median for that group is 34.3%, against this company’s 72.5%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 107 in materials →