The business behind the dividend
| Measure | PPL | Median | Formula |
|---|---|---|---|
| Return on equity | 7.9% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 6.3% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-1.54bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-1.40bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 23.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 12.9% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.27x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.63x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.86x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.23x | 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 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 7.9% | 6.3% | 5.3% | 5.4% | -10.8% | 11.0% | 13.4% | 15.7% | 10.5% | 19.2% | 7.9% |
| Return on capital employed | 6.3% | 5.7% | 5.7% | 5.1% | 5.7% | 5.7% | 4.4% | 8.8% | 9.4% | 10.4% | 5.7% |
| Operating margin | 23.2% | 20.6% | 19.7% | 17.6% | 24.4% | 29.2% | 27.5% | 36.7% | 39.0% | 39.1% | 24.4% |
| Net margin | 12.9% | 10.5% | 8.9% | 9.7% | -25.4% | 27.1% | 31.5% | 23.5% | 15.1% | 25.3% | 12.9% |
| Debt to equity | 1.27x | 1.17x | 1.05x | 0.95x | 0.81x | 1.10x | 1.69x | 1.77x | 1.88x | 1.85x | 1.17x |
| Current ratio | 0.86x | 0.86x | 0.88x | 0.75x | 2.16x | 1.39x | 0.56x | 0.53x | 0.57x | 0.54x | 0.75x |
| Cash conversion | 2.23x | 2.64x | 2.38x | 2.29x | — | 1.87x | 1.39x | 1.54x | 2.18x | 1.52x | 2.18x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, PPL pays out less than 20 of them. The median for that group is 61.5%, against this company’s 68.6%.
Closest on GAAP earnings
- Xcel Energy (XEL) 66.7%
- Duke Energy (DUK) 66.9%
- Black Hills (BKH) 67.9%
- Nextera Energy (NEE) 68.8%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →