The business behind the dividend
| Measure | STM | Median | Formula |
|---|---|---|---|
| Return on equity | 0.9% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 0.9% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 1.5% | 15.0% | Operating income ÷ revenue |
| Net margin | 1.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.12x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 3.18x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 3.36x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.23x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 12.96x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Free cash flow, Owner earnings — 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 | 0.9% | 8.9% | 25.2% | 31.2% | 21.7% | 13.1% | 14.7% | 20.2% | 14.8% | 3.6% | 14.7% |
| Return on capital employed | 0.9% | 8.2% | 23.5% | 28.8% | 20.6% | 12.0% | 13.2% | 16.9% | 14.1% | 3.8% | 13.2% |
| Operating margin | 1.5% | 12.6% | 26.7% | 27.5% | 19.0% | 12.9% | 12.6% | 14.5% | 12.0% | 3.3% | 12.6% |
| Net margin | 1.4% | 11.7% | 24.4% | 24.6% | 15.7% | 10.8% | 10.8% | 13.3% | 9.6% | 2.4% | 10.8% |
| Debt to equity | 0.12x | 0.17x | 0.17x | 0.21x | 0.28x | 0.31x | 0.29x | 0.30x | 0.31x | 0.32x | 0.28x |
| Current ratio | 3.36x | 3.11x | 3.17x | 2.56x | 2.65x | 2.49x | 3.03x | 2.76x | 2.52x | 2.76x | 2.76x |
| Cash conversion | 12.96x | 1.90x | 1.42x | 1.31x | 1.53x | 1.89x | 1.81x | 1.43x | 2.09x | 6.32x | 1.81x |