Aureus
AExcellent

Charles Schwab Corporation (The(SCHW)

A

Financial data as of Dec 31, 2025Improving · Financials

FCF Margin36.6%Free Cash Flow / Revenue
Cash Conversion105.2%Operating CF / Net Income
Free Cash Flow$8.8B
Revenue$23.9B
Net Cash$15.1BCash exceeds debt
Debt / FCF3.5xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth+91.7%3 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 (36.6%, 3.5x)
→
-1Current ratio below 1.0 (0.00)
→
+1Strong YoY FCF growth (91.7% YoY)
→
-0.5Highly volatile FCF (consistency: 12.61)
→
+1Net cash position with strong FCF margin
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (36.6%)
  • Excellent cash conversion (105%)
  • Net cash position ($15.1B)
  • Strong YoY FCF growth (+91.7%)

Concerns

  • Current ratio below 1.0 — tight short-term liquidity
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin36.6%
Net Margin37.0%
Operating CF Margin38.9%
CapEx Ratio2.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$15.1BCash exceeds debt
Debt / FCF3.5xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity0.73Low leverage

Quarterly FCF Trend

+91.7% YoYImproving (+91.7%)

Free cash flow per quarter

Sector Comparison — Financials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCharles Schwab Corporation (The
SectorFinancials
Free Cash Flow$8.8B
Revenue$23.9B
Net Income$8.9B
Operating Cash Flow$9.3B
Capital Expenditure$548.0M
FCF Margin36.6%
Cash Conversion Rate105.2%
Net Margin37.0%
Total Debt$31.0B
Total Cash$46.0B
Net Cash$15.1B
Current Ratio0.00
Debt / Equity0.73
Debt / FCF3.5x
YoY FCF Growth+91.7%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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