The business behind the dividend
| Measure | BRO | Median | Formula |
|---|---|---|---|
| Return on equity | 8.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 6.8% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.04bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.38bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 23.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 17.9% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.61x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 1.04x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 21.54x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Not computed here: Cash conversion, Interest cover — 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 | 8.4% | 15.4% | 15.6% | 14.6% | 14.0% | 12.8% | 11.9% | 11.5% | 15.5% | 10.9% | 12.8% |
| Return on capital employed | 6.8% | 12.7% | 12.2% | 10.2% | 12.3% | 10.7% | 10.7% | 10.3% | 12.6% | — | 10.7% |
| Operating margin | 23.2% | 27.1% | 26.9% | 24.5% | 25.0% | 23.9% | 22.0% | 23.0% | 23.9% | — | 23.9% |
| Net margin | 17.9% | 20.7% | 20.5% | 18.8% | 19.2% | 18.4% | 16.7% | 17.1% | 21.2% | 14.6% | 18.4% |
| Debt to equity | 0.61x | 0.59x | 0.68x | 0.86x | 0.48x | 0.56x | 0.46x | 0.50x | 0.38x | 0.45x | 0.50x |
| Current ratio | 1.04x | 1.10x | 1.04x | 1.09x | 1.25x | 1.26x | 1.22x | 1.22x | 1.13x | 1.20x | 1.13x |
How it compares in financial services
Among the 25 financial services companies here measured on free cash flow, Brown & Brown pays out less than 16 of them. The median for that group is 19.5%, against this company’s 14.0%.
Closest on free cash flow
- Evercore (EVR) 12.2%
- BRC Group Holdings (RILY) 13.2%
- Newmark Group (NMRK) 15.2%
- Mastercard (MA) 16.1%
Same sector and same denominator, so the figures are comparable. All 31 in financial services →