The business behind the dividend
| Measure | LPLA | Median | Formula |
|---|---|---|---|
| Return on equity | 16.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 9.1% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $686.05m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-981.78m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 6.8% | 15.0% | Operating income ÷ revenue |
| Net margin | 5.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.36x | 0.79x | 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, 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 | 16.1% | 36.1% | 51.3% | 39.0% | 27.5% | 35.9% | 54.7% | 45.1% | 24.8% | 23.4% | 35.9% |
| Return on capital employed | 9.1% | 16.5% | 24.9% | 22.8% | 13.4% | 17.1% | 21.7% | 17.7% | 10.9% | 9.9% | 16.5% |
| Operating margin | 6.8% | 11.2% | 14.4% | 12.9% | 7.8% | 10.7% | 13.2% | 11.4% | 8.5% | 7.3% | 10.7% |
| Net margin | 5.1% | 8.5% | 10.6% | 9.8% | 6.0% | 8.0% | 10.0% | 8.5% | 5.6% | 4.7% | 8.0% |
| Debt to equity | 1.36x | 1.87x | 1.80x | 1.25x | 1.68x | 1.78x | 2.34x | 2.43x | 2.47x | 2.65x | 1.80x |