The business behind the dividend
| Measure | WMB | Median | Formula |
|---|---|---|---|
| Return on equity | 20.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 10.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-459.00m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $474.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 28.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 17.6% | 10.2% | Net income ÷ revenue |
| Debt to equity | 2.13x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.91x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.53x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.25x | 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 | 20.4% | 17.9% | 25.6% | 17.8% | 13.3% | 1.8% | 6.4% | -1.1% | 22.5% | -9.1% | 13.3% |
| Return on capital employed | 10.5% | 9.0% | 12.0% | 9.0% | 8.0% | 6.6% | 5.7% | 2.1% | 3.1% | 2.5% | 6.6% |
| Operating margin | 28.2% | 26.4% | 35.9% | 17.0% | 20.6% | 28.8% | 23.6% | 8.9% | 11.5% | 9.2% | 20.6% |
| Net margin | 17.6% | 17.6% | 26.5% | 11.5% | 11.9% | 2.8% | 10.4% | -1.8% | 27.1% | -5.7% | 11.5% |
| Debt to equity | 2.13x | 1.99x | 1.88x | 1.91x | 1.90x | 1.82x | 1.51x | 1.53x | 2.12x | 4.87x | 1.90x |
| Current ratio | 0.53x | 0.50x | 0.77x | 0.78x | 0.91x | 0.62x | 0.40x | 0.81x | 0.82x | 0.50x | 0.62x |
| Cash conversion | 2.25x | 2.24x | 1.87x | 2.39x | 2.60x | 16.57x | 4.34x | — | 1.42x | — | 2.39x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, Williams Companies pays out less than 5 of them. The median for that group is 61.5%, against this company’s 93.5%.
Closest on GAAP earnings
- Kinder Morgan (KMI) 85.2%
- NorthWestern Energy Group (NWE) 89.8%
- Sempra (SRE) 93.8%
- Firstenergy (FE) 100.6%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →