Aureus
DWarning

Deere & Company(DE)

D

Financial data as of Oct 31, 2025Improving · Industrials

FCF Margin7.2%Free Cash Flow / Revenue
Cash Conversion148.4%Operating CF / Net Income
Free Cash Flow$3.2B
Revenue$44.7B
Net Cash-$56.0BNet debt position
Debt / FCF19.9xElevated debt burden
Current Ratio2.31Adequate short-term liquidity
YoY FCF Growth+17.9%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-2Extreme debt-to-FCF ratio (19.9x)
→
+1Strong YoY FCF growth (17.9% YoY)
→
-0.5Highly volatile FCF (consistency: 5.48)
→
FinalD

Analysis Summary

Strengths

  • Excellent cash conversion (148%)
  • Strong liquidity (current ratio: 2.31)
  • FCF trend is improving

Concerns

  • Low FCF margin (7.2%)
  • Heavy debt position ($56.0B net debt, 19.9x FCF)
  • High debt-to-FCF ratio (19.9x)
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.2%
Net Margin11.3%
Operating CF Margin16.7%
CapEx Ratio9.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$56.0BNet debt position
Debt / FCF19.9xElevated debt burden
Current Ratio2.31Strong liquidity
Debt / Equity2.48High leverage

Quarterly FCF Trend

+17.9% YoYImproving (+17.9%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameDeere & Company
SectorIndustrials
Free Cash Flow$3.2B
Revenue$44.7B
Net Income$5.0B
Operating Cash Flow$7.5B
Capital Expenditure$4.2B
FCF Margin7.2%
Cash Conversion Rate148.4%
Net Margin11.3%
Total Debt$64.3B
Total Cash$8.3B
Net Cash-$56.0B
Current Ratio2.31
Debt / Equity2.48
Debt / FCF19.9x
YoY FCF Growth+17.9%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateOct 31, 2025
GradeD
Data SourceYahoo Finance

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