Overview: 4–5Capital Management Philosophy
S&P Global’s capital management philosophy* is focused on:
- Responsible stewardship of shareholder capital
- Business line accountability
- A capital-light, cash flow generative business model
- Robust investment-grade balance sheet
- A rigorous framework for capital allocation
- Disciplined acquisition strategy
- Returning capital to shareholders
…resulting in strong total shareholder returns
*Introduced in 2017
Capital Management Starts with Free Cash Flow Generation
Adjusted free cash flow excluding certain items increased to approximately $5.7 billion in 2024
See page 72 for 11-year Free Cash Flow table and footnotes
Annual Adjusted Free Cash Flow & Cash Returned to Shareholders
In 2024, free cash flow increased to $5.3 billion compared to $3.3 billion in 2023 primarily due to an increase in cash provided by operating activities. Additionally, the Company paid dividends of $1.134 billion.
See page 72 for 11-year Free Cash Flow table and footnotes
See pages 74 and 75 for the dividend and share repurchase tables
S&P Global is committed to returning excess capital to shareholders while maintaining a strong balance sheet
Setting Clear Financial Metrics for Organic and Inorganic Investments
Key Financial Metrics
- Net Present Value (NPV)
- Cash Return on Invested Capital (ROIC)
- Internal Rate of Return (IRR)
- Earnings contribution
The Company continuously analyzes a wide range of internal investments and acquisitions to deliver upon strategic goals and enhance competitive positioning, allocating capital to the highest returning projects and holding our management team accountable.
The Company is generally interested in opportunities that:
- Augment benchmarks, proprietary data, and tools and analytics capabilities
- Provide geographic diversification
- Bolster recurring revenues
- Provide synergies
Maintaining a Prudent and Flexible Balance Sheet
Financial Health Targets
- Committed to investment-grade credit rating
- Targeting an adjusted gross debt to adjusted EBITDA ratio of 2.0x to 2.5x
Delivering Strong Total Shareholder Return
The value of $100 invested on December 31, 2019 is $189 at the end of 2024. Total return includes all reinvestment of dividends through December 31, 2024.
Notes:
Free cash flow excluding certain items: See reconciliation on page 72
Free cash flow represents operating cash flow less capex, distributions to noncontrolling interest holders, and certain excluded items. Target includes both dividends and share repurchases
2022 adjusted gross debt includes debt, unfunded portion of pension liabilities (~$190 million), S&P DJI put option (~$3.3 billion), and the expected NPV of operating leases (~$695 million)
2023 adjusted gross debt includes debt, unfunded portion of pension liabilities (~$209 million), S&P DJI put option (~$3.8 billion), and the expected NPV of operating leases (~$646 million); adjusted EBITDA includes EBITDA plus net lease expense (~$134 million) and income adjustment on qualified pension plans (~$2 million)
2024 adjusted gross debt includes debt, unfunded portion of pension liabilities (~$190 million), redeemable noncontrolling interests (~$4.3 billion), and the expected NPV of operating leases (~$644 million); adjusted EBITDA includes EBITDA plus net lease expense (~$129 million) less income adjustment on qualified U.S. pension plans (~$(20) million)
See EBITDA reconciliation on page 71
Calculated using dividend-adjusted closing share price
Reflects the peer group used in the Company’s Form 10-K filed with the SEC on February 11, 2025, consisting of: Moody’s Corporation; CME Group Inc.; MSCI Inc., FactSet Research Systems Inc.; Verisk Analytics, Inc.; and Intercontinental Exchange, Inc.