The business behind the dividend
| Measure | PSX | Median | Formula |
|---|---|---|---|
| Return on equity | 15.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | — | — | Operating income ÷ revenue |
| Net margin | 3.3% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.68x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 1.30x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 4.73x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.13x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Free cash flow, Interest cover, Operating margin, Owner earnings, Return on capital employed — 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 | 15.1% | 7.7% | 22.9% | 37.4% | 6.9% | -20.9% | 12.3% | 22.7% | 20.4% | 6.9% | 12.3% |
| Return on capital employed | — | — | — | — | — | -14.2% | 11.4% | 20.8% | 10.1% | 6.6% | 10.1% |
| Operating margin | — | — | — | — | — | -7.7% | 3.9% | 6.7% | 3.5% | 2.6% | 3.5% |
| Net margin | 3.3% | 1.5% | 4.8% | 6.5% | 1.2% | -6.2% | 2.9% | 5.0% | 5.0% | 1.8% | 2.9% |
| Debt to equity | 0.68x | 0.73x | 0.63x | 0.58x | 0.75x | 0.84x | 0.47x | 0.45x | 0.40x | 0.47x | 0.58x |
| Current ratio | 1.30x | 1.19x | 1.26x | 1.38x | 1.15x | 1.39x | 1.24x | 1.48x | 1.42x | 1.34x | 1.30x |
| Cash conversion | 1.13x | 1.98x | 1.00x | 0.98x | 4.57x | — | 1.56x | 1.35x | 0.71x | 1.91x | 1.35x |