Aureus
AExcellent

Shopify Inc.(SHOP)

A

Financial data as of Dec 31, 2024Improving · Technology

FCF Margin18.0%Free Cash Flow / Revenue
Cash Conversion80.0%Operating CF / Net Income
Free Cash Flow$1.6B
Revenue$8.9B
Net Cash$363.0MCash exceeds debt
Debt / FCF0.7xManageable debt load
Current Ratio3.71Adequate short-term liquidity
YoY FCF Growth+20.4%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Healthy FCF margin with manageable debt (18.0%, 0.7x)
→
+1Strong YoY FCF growth (20.4% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.7x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (18.0%)
  • Net cash position ($0.4B)
  • Very low debt relative to cash flow (0.7x)
  • Strong liquidity (current ratio: 3.71)
  • Strong YoY FCF growth (+20.4%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin18.0%
Net Margin22.7%
Operating CF Margin18.2%
CapEx Ratio0.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$363.0MCash exceeds debt
Debt / FCF0.7xManageable debt load
Current Ratio3.71Strong liquidity
Debt / Equity0.10Low leverage

Quarterly FCF Trend

+20.4% YoYImproving (+20.4%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameShopify Inc.
SectorTechnology
Free Cash Flow$1.6B
Revenue$8.9B
Net Income$2.0B
Operating Cash Flow$1.6B
Capital Expenditure$19.0M
FCF Margin18.0%
Cash Conversion Rate80.0%
Net Margin22.7%
Total Debt$1.1B
Total Cash$1.5B
Net Cash$363.0M
Current Ratio3.71
Debt / Equity0.10
Debt / FCF0.7x
YoY FCF Growth+20.4%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance