The business behind the dividend
| Measure | NWE | Median | Formula |
|---|---|---|---|
| Return on equity | 6.3% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 5.3% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-93.84m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-130.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 20.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 11.2% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.14x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.17x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.72x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.18x | 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 | 2022 | 2021 | Median |
|---|---|---|---|---|---|---|
| Return on equity | 6.3% | 7.8% | 7.0% | 6.9% | 8.0% | 7.0% |
| Return on capital employed | 5.3% | 5.5% | 5.4% | 5.0% | — | 5.4% |
| Operating margin | 20.2% | 21.4% | 19.3% | 18.0% | 20.8% | 20.2% |
| Net margin | 11.2% | 14.8% | 12.5% | 12.5% | 14.1% | 12.5% |
| Debt to equity | 1.14x | 1.05x | 1.00x | 0.98x | — | 1.05x |
| Current ratio | 0.72x | 0.52x | 0.76x | 0.87x | — | 0.76x |
| Cash conversion | 2.18x | 1.81x | 2.52x | 1.68x | 1.18x | 1.81x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, NorthWestern Energy Group pays out less than 6 of them. The median for that group is 61.5%, against this company’s 89.8%.
Closest on GAAP earnings
- Avista (AVA) 82.4%
- Kinder Morgan (KMI) 85.2%
- Williams Companies (WMB) 93.5%
- Sempra (SRE) 93.8%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →