Aureus
FRed Flag

Bank of America Corporation(BAC)

F

Financial data as of Dec 31, 2025Declining · Financials

FCF Margin11.2%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 / FCF29.0xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth-188.5%2 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
-2Extreme debt-to-FCF ratio (29.0x)
→
-1Current ratio below 1.0 (0.00)
→
-1Negative FCF in 3 of last 4 quarters
→
-1Low cash conversion rate (41%)
→
-1Significant YoY FCF decline (-188.5%)
→
-1Only 2 positive quarters recently
→
-0.5Highly volatile FCF (consistency: 3.28)
→
FinalF

Analysis Summary

Strengths

  • Healthy FCF margin (11.2%)

Concerns

  • Weak cash conversion (41%)
  • Heavy debt position ($126.6B net debt, 29.0x FCF)
  • High debt-to-FCF ratio (29.0x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 2 positive FCF quarters recently
  • Significant YoY FCF decline (-188.5%)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin11.2%
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 / FCF29.0xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity1.32Moderate leverage

Quarterly FCF Trend

-188.5% YoYDeclining (-188.5%)

Free cash flow per quarter

Sector Comparison — Financials

FCF Margin ranked against sector peers

View all →

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 Margin11.2%
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 / FCF29.0x
YoY FCF Growth-188.5%
Positive Quarters2 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance