Aureus
AExcellent

Zoom Communications, Inc.(ZM)

A

Financial data as of Jan 31, 2025Improving · Technology

FCF Margin38.8%Free Cash Flow / Revenue
Cash Conversion192.6%Operating CF / Net Income
Free Cash Flow$1.8B
Revenue$4.7B
Net Cash$1.3BCash exceeds debt
Debt / FCF0.0xManageable debt load
Current Ratio4.56Adequate short-term liquidity
YoY FCF Growth+34.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (38.8%, 0.0x)
→
+1Strong YoY FCF growth (34.2% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.0x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (38.8%)
  • Excellent cash conversion (193%)
  • Net cash position ($1.3B)
  • Very low debt relative to cash flow (0.0x)
  • Strong liquidity (current ratio: 4.56)
  • Strong YoY FCF growth (+34.2%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin38.8%
Net Margin21.7%
Operating CF Margin41.7%
CapEx Ratio2.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.3BCash exceeds debt
Debt / FCF0.0xManageable debt load
Current Ratio4.56Strong liquidity
Debt / Equity0.01Low leverage

Quarterly FCF Trend

+34.2% YoYImproving (+34.2%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameZoom Communications, Inc.
SectorTechnology
Free Cash Flow$1.8B
Revenue$4.7B
Net Income$1.0B
Operating Cash Flow$1.9B
Capital Expenditure$136.6M
FCF Margin38.8%
Cash Conversion Rate192.6%
Net Margin21.7%
Total Debt$64.4M
Total Cash$1.3B
Net Cash$1.3B
Current Ratio4.56
Debt / Equity0.01
Debt / FCF0.0x
YoY FCF Growth+34.2%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJan 31, 2025
GradeA
Data SourceYahoo Finance