The business behind the dividend
| Measure | AES | Median | Formula |
|---|---|---|---|
| Return on equity | 22.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $-3.56bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-1.62bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | — | — | Operating income ÷ revenue |
| Net margin | 7.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 0.77x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 4.73x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Debt to equity, Long-term debt to working capital, Interest cover, Operating margin, 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 | 22.4% | 46.1% | 10.0% | -22.4% | -14.6% | 1.7% | 10.1% | 37.5% | -47.1% | -40.4% | 1.7% |
| Operating margin | — | — | — | 0.8% | 5.8% | -2.0% | -2.7% | -4.7% | -4.9% | -3.4% | -2.7% |
| Net margin | 7.4% | 13.7% | 2.0% | -4.3% | -3.7% | 0.5% | 3.0% | 11.2% | -11.0% | -11.0% | 0.5% |
| Current ratio | 0.77x | 0.80x | 0.68x | 1.18x | 1.13x | 1.01x | 1.03x | 1.14x | 1.06x | 1.22x | 1.03x |
| Cash conversion | 4.73x | 1.64x | 12.18x | — | — | — | 8.14x | 1.95x | — | — | 4.73x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, AES pays out less than 39 of them. The median for that group is 61.5%, against this company’s 55.9%.
Closest on GAAP earnings
- New Jersey Resources (NJR) 54.8%
- Centerpoint Energy (CNP) 55.3%
- American Electric Power (AEP) 56.2%
- Nisource (NI) 57.4%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →