The business behind the dividend
| Measure | AFL | Median | Formula |
|---|---|---|---|
| Return on equity | 12.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 26.4% | 15.0% | Operating income ÷ revenue |
| Net margin | 21.2% | 10.2% | 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 |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Free cash flow, 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 | 12.4% | 20.9% | 21.2% | 21.9% | 24.8% | 14.2% | 11.4% | 12.4% | 18.7% | 13.0% | 14.2% |
| Operating margin | 26.4% | 33.9% | 28.1% | 21.7% | 22.9% | 19.9% | 20.0% | 20.0% | 18.9% | 18.2% | 20.0% |
| Net margin | 21.2% | 28.8% | 24.9% | 23.1% | 19.6% | 21.6% | 14.8% | 13.4% | 21.2% | 11.8% | 21.2% |
How it compares in banks & insurers
Among the 48 banks & insurers companies here measured on GAAP earnings, Aflac pays out less than 22 of them. The median for that group is 34.0%, against this company’s 34.2%.
Closest on GAAP earnings
- American International Group (AIG) 32.2%
- M&T Bank (MTB) 33.5%
- State Street (STT) 34.0%
- Northern Trust (NTRS) 35.5%
Same sector and same denominator, so the figures are comparable. All 48 in banks & insurers →