The business behind the dividend
| Measure | TROW | Median | Formula |
|---|---|---|---|
| Return on equity | 19.2% | 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 | $1.48bn | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 29.9% | 14.3% | Operating income ÷ revenue |
| Net margin | 28.5% | 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 | 2.3% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Current ratio, Debt to equity, 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 | 19.2% | 20.3% | 18.8% | 17.6% | 34.2% | 30.8% | 30.0% | 30.0% | 25.7% | 24.3% | 24.3% |
| Operating margin | 29.9% | 32.9% | 30.7% | 36.6% | 48.4% | 44.2% | 42.5% | 44.0% | 43.4% | 40.5% | 40.5% |
| Net margin | 28.5% | 29.6% | 27.7% | 24.0% | 40.2% | 38.2% | 37.9% | 34.2% | 30.9% | 28.4% | 29.6% |
How it compares in financial services
Among the 52 financial services companies here measured on free cash flow, Price T Rowe Group pays out less than 7 of them. The median for that group is 31.5%, against this company’s 77.3%.
Closest on free cash flow
- NOAH Holdings (NOAH) 64.9%
- Value Line (VALU) 65.8%
- TPG (TPG) 73.8%
- Franklin Resources (BEN) 75.0%
Same sector and same denominator, so the figures are comparable. All 67 in financial services →