showing the working

← Tradeweb Markets

The business behind the dividend

MeasureTWMedianFormula
Return on equity12.5%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$1.02bn$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$1.13bn$155.08mOperating cash flow − capital expenditure
Operating margin40.7%14.3%Operating income ÷ revenue
Net margin39.6%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-4.3%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, 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.

Measure20252024202320222021202020192017Median
Return on equity12.5%8.6%6.8%6.2%4.9%3.9%2.5%8.5%6.8%
Operating margin40.7%39.3%37.8%34.7%33.3%29.5%24.5%15.8%34.7%
Net margin39.6%29.1%27.3%26.0%21.1%18.6%10.8%14.9%26.0%

How it compares in financial services

Among the 52 financial services companies here measured on free cash flow, Tradeweb Markets pays out less than 47 of them. The median for that group is 31.5%, against this company’s 9.1%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 67 in financial services →