The business behind the dividend
| Measure | SWK | Median | Formula |
|---|---|---|---|
| Return on equity | 4.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 2.9% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $484.20m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $687.90m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 2.8% | 15.0% | Operating income ÷ revenue |
| Net margin | 2.7% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.58x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 0.81x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.14x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 6.41x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.42x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2024 | 2023 | 2022 | 2022 | 2021 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 4.4% | 3.4% | -3.4% | 10.9% | 14.6% | 11.2% | 10.5% | 7.7% | 14.8% | 15.2% | 10.5% |
| Return on capital employed | 2.9% | 1.6% | -2.5% | 0.3% | — | 14.2% | 16.2% | 14.9% | 16.5% | 17.9% | 14.2% |
| Operating margin | 2.8% | 1.6% | -2.4% | 0.2% | — | 17.1% | 15.4% | 13.5% | 15.4% | 15.8% | 13.5% |
| Net margin | 2.7% | 1.9% | -2.0% | 6.3% | 11.1% | 9.7% | 7.4% | 4.3% | 9.5% | 8.3% | 6.3% |
| Debt to equity | 0.58x | 0.70x | 0.67x | 0.55x | 0.38x | 0.38x | 0.35x | 0.61x | 0.46x | 0.60x | 0.55x |
| Current ratio | 1.14x | 1.30x | 1.19x | 1.21x | 0.97x | 1.32x | 1.01x | 1.14x | 1.04x | 1.71x | 1.14x |
| Cash conversion | 2.42x | 3.76x | — | -1.37x | 0.39x | 1.64x | 1.58x | 2.08x | 0.54x | 1.22x | 1.58x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, Stanley Black & Decker pays out less than 3 of them. The median for that group is 28.1%, against this company’s 72.8%.
Closest on free cash flow
- Union Pacific (UNP) 58.8%
- Paccar (PCAR) 61.7%
- Illinois Tool Works (ITW) 65.9%
- Royal Caribbean Cruises (RCL) 66.7%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →