The business behind the dividend
| Measure | KVUE | Median | Formula |
|---|---|---|---|
| Return on equity | 13.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 12.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.55bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.72bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 16.0% | 15.0% | Operating income ÷ revenue |
| Net margin | 9.7% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.86x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 5.61x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.96x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.49x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — 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 | 2023 | 2022 | Median |
|---|---|---|---|---|---|---|
| Return on equity | 13.7% | 10.7% | 14.8% | 10.3% | 10.1% | 10.7% |
| Return on capital employed | 12.0% | 9.7% | 12.9% | 13.4% | — | 12.9% |
| Operating margin | 16.0% | 11.9% | 16.3% | 17.9% | 19.4% | 16.3% |
| Net margin | 9.7% | 6.7% | 10.8% | 13.8% | 13.8% | 10.8% |
| Debt to equity | 0.86x | 0.97x | 0.74x | 0.00x | — | 0.86x |
| Current ratio | 0.96x | 0.96x | 1.12x | 1.50x | — | 1.12x |
| Cash conversion | 1.49x | 1.72x | 1.90x | 1.22x | 0.16x | 1.49x |
How it compares in consumer staples
Among the 38 consumer staples companies here measured on free cash flow, Kenvue pays out less than 6 of them. The median for that group is 65.1%, against this company’s 91.8%.
Closest on free cash flow
- General Mills (GIS) 80.9%
- Keurig Dr Pepper (KDP) 83.1%
- Pepsico (PEP) 99.6%
- Kimberly Clark (KMB) 101.3%
Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →