The business behind the dividend
| Measure | HDB | Median | Formula |
|---|---|---|---|
| Return on equity | 8.8% | 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 | $13.22bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 39.3% | 15.0% | Operating income ÷ revenue |
| Net margin | 30.8% | 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, 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 | 8.8% | 9.0% | 17.0% | 15.4% | 15.1% | 13.7% | 13.5% | 15.2% | 13.7% | 13.6% | 13.7% |
| Operating margin | 39.3% | 38.1% | 58.6% | 58.2% | 56.2% | 54.3% | 57.1% | 54.5% | 51.9% | 50.5% | 54.3% |
| Net margin | 30.8% | 33.6% | 43.8% | 43.3% | 41.7% | 38.6% | 37.0% | 35.1% | 33.1% | 32.1% | 35.1% |
How it compares in banks & insurers
Among the 48 banks & insurers companies here measured on GAAP earnings, Hdfc Bank pays out less than 33 of them. The median for that group is 34.0%, against this company’s 25.0%.
Closest on GAAP earnings
- Cincinnati Financial (CINF) 22.9%
- Schwab Charles (SCHW) 23.2%
- Bank of New York Mellon (BK) 27.0%
- Wells Fargo (WFC) 27.2%
Same sector and same denominator, so the figures are comparable. All 48 in banks & insurers →