vvincii we show the working

← Marsh & Mclennan Companies

The business behind the dividend

MeasureMMCMedianFormula
Return on equity27.2%11.7%Net income ÷ shareholders’ equity
Return on capital employed17.8%10.1%Operating income ÷ (equity + total debt)
Owner earnings$4.23bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$5.00bn$746.10mOperating cash flow − capital expenditure
Operating margin23.1%15.0%Operating income ÷ revenue
Net margin15.4%10.2%Net income ÷ revenue
Debt to equity1.28x0.79xTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratio1.10x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital8.56x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income

Not computed here: Cash conversion, 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.

Measure2025202420232022202120202019201820172016Median
Return on equity27.2%30.0%30.4%28.4%28.0%21.8%21.9%21.8%20.0%28.2%27.2%
Return on capital employed17.8%17.4%20.4%19.2%19.4%14.9%13.5%20.6%20.5%22.0%19.2%
Operating margin23.1%23.8%23.2%20.7%21.8%17.8%16.1%18.5%18.9%18.4%18.9%
Net margin15.4%16.6%16.5%14.7%15.9%11.7%10.5%11.0%10.6%13.4%13.4%
Debt to equity1.28x1.47x1.09x1.07x0.98x1.22x1.51x0.77x0.74x0.76x1.07x
Current ratio1.10x1.13x1.10x1.06x1.24x1.24x1.06x1.21x1.31x1.20x1.13x

How it compares in financial services

Among the 25 financial services companies here measured on free cash flow, Marsh & Mclennan Companies pays out less than 9 of them. The median for that group is 19.5%, against this company’s 34.0%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 31 in financial services →