Aureus
AExcellent

QUALCOMM Incorporated(QCOM)

A

Financial data as of Sep 30, 2025Declining · Technology

FCF Margin22.7%Free Cash Flow / Revenue
Cash Conversion252.9%Operating CF / Net Income
Free Cash Flow$12.8B
Revenue$44.3B
Net Cash-$9.3BNet debt position
Debt / FCF1.5xManageable debt load
Current Ratio2.82Adequate short-term liquidity
YoY FCF Growth-35.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (22.7%, 1.5x)
→
-1Significant YoY FCF decline (-35.6%)
→
+1Very low debt-to-FCF ratio (1.5x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (22.7%)
  • Excellent cash conversion (253%)
  • Very low debt relative to cash flow (1.5x)
  • Strong liquidity (current ratio: 2.82)

Concerns

  • Net debt position ($9.3B) — 1.5x FCF, manageable
  • Significant YoY FCF decline (-35.6%)
SBC-adjusted FCF used — $2.8B stock-based compensation (22% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin22.7%
Net Margin12.5%
Operating CF Margin31.6%
CapEx Ratio2.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$9.3BNet debt position
Debt / FCF1.5xManageable debt load
Current Ratio2.82Strong liquidity
Debt / Equity0.70Low leverage

Quarterly FCF Trend

-35.6% YoYDeclining (-35.6%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameQUALCOMM Incorporated
SectorTechnology
Free Cash Flow$12.8B
Revenue$44.3B
Net Income$5.5B
Operating Cash Flow$14.0B
Capital Expenditure$1.2B
FCF Margin22.7%
Cash Conversion Rate252.9%
Net Margin12.5%
Total Debt$14.8B
Total Cash$5.5B
Net Cash-$9.3B
Current Ratio2.82
Debt / Equity0.70
Debt / FCF1.5x
YoY FCF Growth-35.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateSep 30, 2025
GradeA
Data SourceYahoo Finance