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← Eastman Chemical

The business behind the dividend

MeasureEMNMedianFormula
Return on equity8.0%11.7%Net income ÷ shareholders’ equity
Return on capital employed5.6%10.1%Operating income ÷ (equity + total debt)
Owner earnings$441.00m$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$424.00m$746.10mOperating cash flow − capital expenditure
Operating margin6.5%15.0%Operating income ÷ revenue
Net margin5.4%10.2%Net income ÷ revenue
Debt to equity0.70x0.79xTotal debt ÷ shareholders’ equity
Interest cover2.64x4.43xOperating income ÷ interest expense
Current ratio1.37x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital4.23x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversion2.05x1.78xOperating cash flow ÷ net income

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity8.0%15.7%16.4%15.4%15.0%7.9%12.7%18.6%25.6%18.8%15.4%
Return on capital employed5.6%10.4%11.1%10.6%10.7%4.7%7.8%11.2%13.3%12.8%10.6%
Operating margin6.5%11.5%11.8%9.2%10.3%6.3%9.7%12.9%16.0%15.4%10.3%
Net margin5.4%9.6%9.7%7.5%8.2%5.6%8.2%10.6%14.5%9.5%8.2%
Debt to equity0.70x0.79x0.79x0.78x0.77x0.87x0.94x1.02x1.14x1.39x0.79x
Current ratio1.37x1.51x1.35x1.16x1.56x1.74x1.86x1.82x1.59x1.60x1.56x
Cash conversion2.05x1.42x1.54x1.23x1.89x3.04x1.98x1.43x1.20x1.62x1.54x

How it compares in materials

Among the 35 materials companies here measured on free cash flow, Eastman Chemical pays out less than 6 of them. The median for that group is 40.8%, against this company’s 89.9%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 47 in materials →