Aureus
DWarning

Williams Companies, Inc. (The)(WMB)

D

Financial data as of Dec 31, 2024Declining · Energy

FCF Margin21.9%Free Cash Flow / Revenue
Cash Conversion223.6%Operating CF / Net Income
Free Cash Flow$2.3B
Revenue$10.5B
Net Cash-$26.9BNet debt position
Debt / FCF11.7xElevated debt burden
Current Ratio0.50Tight short-term liquidity
YoY FCF Growth-13.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-2Very high debt-to-FCF ratio (11.7x)
→
-1Current ratio below 1.0 (0.50)
→
-0.5Moderate decline but healthy margin (-13.6% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalD

Analysis Summary

Strengths

  • Exceptional FCF margin (21.9%)
  • Excellent cash conversion (224%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($26.9B)
  • High debt-to-FCF ratio (11.7x)
  • Current ratio below 1.0 — tight short-term liquidity
  • FCF trend declining (-13.6% YoY) but margin still healthy

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin21.9%
Net Margin21.2%
Operating CF Margin47.4%
CapEx Ratio25.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$26.9BNet debt position
Debt / FCF11.7xElevated debt burden
Current Ratio0.50Tight liquidity
Debt / Equity2.17High leverage

Quarterly FCF Trend

-13.6% YoYDeclining (-13.6%)

Free cash flow per quarter

Sector Comparison — Energy

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameWilliams Companies, Inc. (The)
SectorEnergy
Free Cash Flow$2.3B
Revenue$10.5B
Net Income$2.2B
Operating Cash Flow$5.0B
Capital Expenditure$2.7B
FCF Margin21.9%
Cash Conversion Rate223.6%
Net Margin21.2%
Total Debt$26.9B
Total Cash$60.0M
Net Cash-$26.9B
Current Ratio0.50
Debt / Equity2.17
Debt / FCF11.7x
YoY FCF Growth-13.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeD
Data SourceYahoo Finance

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