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← International Flavors & Fragrances

The business behind the dividend

MeasureIFFMedianFormula
Return on equity-2.5%11.7%Net income ÷ shareholders’ equity
Return on capital employed-1.9%10.1%Operating income ÷ (equity + total debt)
Owner earnings$9.00m$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$256.00m$746.10mOperating cash flow − capital expenditure
Operating margin-3.5%15.0%Operating income ÷ revenue
Net margin-3.3%10.2%Net income ÷ revenue
Debt to equity0.42x0.79xTotal debt ÷ shareholders’ equity
Interest cover-1.67x4.43xOperating income ÷ interest expense
Current ratio1.42x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital2.85x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income

Not computed here: Cash conversion — 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.

Measure2025202420232022202120202019201820172016Median
Return on equity-2.5%1.9%-17.7%-10.6%1.3%5.8%7.4%5.6%17.6%24.9%1.9%
Return on capital employed-1.9%3.4%-8.5%-4.6%1.8%5.3%6.3%5.5%16.6%18.7%3.4%
Operating margin-3.5%6.7%-18.4%-10.7%5.0%11.1%12.9%14.7%16.3%17.7%6.7%
Net margin-3.3%2.3%-22.5%-15.0%2.4%7.2%8.9%8.5%8.7%13.0%2.4%
Debt to equity0.42x0.65x0.69x0.62x0.54x0.70x0.70x0.75x0.97x0.81x0.69x
Current ratio1.42x1.83x1.67x1.99x1.92x1.61x1.90x2.61x2.47x1.79x1.83x
Cash conversion4.01x5.15x1.95x1.52x1.29x1.32x1.36x1.52x

How it compares in materials

Among the 35 materials companies here measured on free cash flow, International Flavors & Fragrances pays out less than 2 of them. The median for that group is 40.8%, against this company’s 159.8%.

Closest on free cash flow

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