Aureus
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Bank of America Corporation(BAC)

F

Financial data as of Dec 31, 2025Declining · Financials

FCF Margin7.6%Free Cash Flow / Revenue
Cash Conversion41.3%Operating CF / Net Income
Free Cash Flow$12.6B
Revenue$113.1B
Net Cash-$126.6BNet debt position
Debt / FCF42.5xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth-195.6%2 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-1Current ratio below 1.0 (0.00)
→
-1Negative FCF in 3 of last 4 quarters
→
-0.5Below-average cash conversion rate (41%)
→
-1Significant YoY FCF decline (-195.6%)
→
-1Only 2 positive quarters recently
→
-0.5Highly volatile FCF (consistency: 3.75)
→
+0.25Solid revenue growth (23.0% YoY)
→
FinalF

Analysis Summary

Strengths

  • Strong revenue growth (23.0% YoY)

Concerns

  • Low FCF margin (7.6%)
  • Weak cash conversion (41%)
  • Heavy debt position ($126.6B net debt, 42.5x FCF)
  • High debt-to-FCF ratio (42.5x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 2 positive FCF quarters recently
  • Significant YoY FCF decline (-195.6%)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $4.0B stock-based compensation (32% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.6%
Net Margin27.0%
Operating CF Margin11.2%
CapEx Ratio0.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$126.6BNet debt position
Debt / FCF42.5xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity1.32Moderate leverage

Quarterly FCF Trend

-195.6% YoYDeclining (-195.6%)

Free cash flow per quarter

Sector Comparison — Financials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameBank of America Corporation
SectorFinancials
Free Cash Flow$12.6B
Revenue$113.1B
Net Income$30.5B
Operating Cash Flow$12.6B
Capital Expenditure$0
FCF Margin7.6%
Cash Conversion Rate41.3%
Net Margin27.0%
Total Debt$365.9B
Total Cash$239.3B
Net Cash-$126.6B
Current Ratio0.00
Debt / Equity1.32
Debt / FCF42.5x
YoY FCF Growth-195.6%
Positive Quarters2 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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