The business behind the dividend
| Measure | SCHW | Median | Formula |
|---|---|---|---|
| Return on equity | 17.9% | 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 | $8.71bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 47.9% | 15.0% | Operating income ÷ revenue |
| Net margin | 37.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | 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, Debt to equity, Long-term debt to working capital, Interest cover, 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 | 17.9% | 12.3% | 12.4% | 19.6% | 10.4% | 5.9% | 17.0% | 17.0% | 12.7% | 11.5% | 12.4% |
| Operating margin | 47.9% | 39.2% | 33.9% | 45.2% | 41.6% | 36.8% | 45.2% | 45.0% | 42.4% | 40.0% | 41.6% |
| Net margin | 37.0% | 30.3% | 26.9% | 34.6% | 31.6% | 28.2% | 34.5% | 34.6% | 27.3% | 25.3% | 30.3% |
How it compares in banks & insurers
Among the 48 banks & insurers companies here measured on GAAP earnings, Schwab Charles pays out less than 34 of them. The median for that group is 34.0%, against this company’s 23.2%.
Closest on GAAP earnings
- Everest Group (EG) 21.2%
- American Express (AXP) 21.3%
- Cincinnati Financial (CINF) 22.9%
- Hdfc Bank (HDB) 25.0%
Same sector and same denominator, so the figures are comparable. All 48 in banks & insurers →