Aureus
AExcellent

AvalonBay Communities, Inc.(AVB)

A

Financial data as of Dec 31, 2024Stable · Real Estate

FCF Margin48.4%Free Cash Flow / Revenue
Cash Conversion148.6%Operating CF / Net Income
Free Cash Flow$1.4B
Revenue$2.9B
Net Cash-$8.1BNet debt position
Debt / FCF5.9xElevated debt burden
Current Ratio0.36Tight short-term liquidity
YoY FCF Growth-7.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (5.9x)
→
+0.5Healthy FCF margin with manageable debt (48.4%, 5.9x)
→
-1Current ratio below 1.0 (0.36)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (48.4%)
  • Excellent cash conversion (149%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($8.1B)
  • High debt-to-FCF ratio (5.9x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin48.4%
Net Margin37.1%
Operating CF Margin55.2%
CapEx Ratio6.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.1BNet debt position
Debt / FCF5.9xElevated debt burden
Current Ratio0.36Tight liquidity
Debt / Equity0.69Low leverage

Quarterly FCF Trend

-7.1% YoYStable (-7.1%)

Free cash flow per quarter

Sector Comparison — Real Estate

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameAvalonBay Communities, Inc.
SectorReal Estate
Free Cash Flow$1.4B
Revenue$2.9B
Net Income$1.1B
Operating Cash Flow$1.6B
Capital Expenditure$198.0M
FCF Margin48.4%
Cash Conversion Rate148.6%
Net Margin37.1%
Total Debt$8.3B
Total Cash$108.6M
Net Cash-$8.1B
Current Ratio0.36
Debt / Equity0.69
Debt / FCF5.9x
YoY FCF Growth-7.1%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance