The business behind the dividend
| Measure | AXP | Median | Formula |
|---|---|---|---|
| Return on equity | 32.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $10.19bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $16.00bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 33.4% | 15.0% | Operating income ÷ revenue |
| Net margin | 26.2% | 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, 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.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 32.4% | 33.5% | 29.8% | 30.4% | 36.3% | 13.6% | 29.3% | 31.0% | 15.0% | 26.2% | 29.8% |
| Operating margin | 33.4% | 33.2% | 28.2% | 28.0% | 38.6% | 19.6% | 29.9% | — | — | — | 29.9% |
| Net margin | 26.2% | 26.1% | 22.5% | 22.0% | 29.1% | 14.3% | 24.0% | 26.0% | 11.1% | 22.2% | 22.5% |
How it compares in banks & insurers
Among the 48 banks & insurers companies here measured on GAAP earnings, American Express pays out less than 36 of them. The median for that group is 34.0%, against this company’s 21.3%.
Closest on GAAP earnings
- Reinsurance Group of America (RGA) 20.6%
- Everest Group (EG) 21.2%
- Cincinnati Financial (CINF) 22.9%
- Schwab Charles (SCHW) 23.2%
Same sector and same denominator, so the figures are comparable. All 48 in banks & insurers →