Aureus
FRed Flag

Amazon.com, Inc.(AMZN)

F

Financial data as of Dec 31, 2025Declining · Consumer Discretionary

FCF Margin1.1%Free Cash Flow / Revenue
Cash Conversion179.6%Operating CF / Net Income
Free Cash Flow$7.7B
Revenue$716.9B
Net Cash-$66.2BNet debt position
Debt / FCF19.9xElevated debt burden
Current Ratio1.05Adequate short-term liquidity
YoY FCF Growth-16.1%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (19.9x)
→
-0.5FCF trend declining (-16.1% YoY)
→
-0.5Highly volatile FCF (consistency: 1.91)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (180%)

Concerns

  • Low FCF margin (1.1%)
  • Heavy debt position ($66.2B)
  • High debt-to-FCF ratio (19.9x)
  • Highly volatile quarterly FCF
  • Significant FCF decline (-16.1% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.1%
Net Margin10.8%
Operating CF Margin19.5%
CapEx Ratio18.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$66.2BNet debt position
Debt / FCF19.9xElevated debt burden
Current Ratio1.05Adequate liquidity
Debt / Equity0.37Low leverage

Quarterly FCF Trend

-16.1% YoYDeclining (-16.1%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAmazon.com, Inc.
SectorConsumer Discretionary
Free Cash Flow$7.7B
Revenue$716.9B
Net Income$77.7B
Operating Cash Flow$139.5B
Capital Expenditure$131.8B
FCF Margin1.1%
Cash Conversion Rate179.6%
Net Margin10.8%
Total Debt$153.0B
Total Cash$86.8B
Net Cash-$66.2B
Current Ratio1.05
Debt / Equity0.37
Debt / FCF19.9x
YoY FCF Growth-16.1%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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