Aureus
AExcellent

Zoom Communications, Inc.(ZM)

A

Financial data as of Jan 31, 2026Declining · Technology

FCF Margin39.5%Free Cash Flow / Revenue
Cash Conversion104.7%Operating CF / Net Income
Free Cash Flow$1.9B
Revenue$4.9B
Net Cash$1.2BCash exceeds debt
Debt / FCF0.0xManageable debt load
Current Ratio4.33Adequate short-term liquidity
YoY FCF Growth-18.7%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 (39.5%, 0.0x)
→
-0.5Moderate decline but healthy margin (-18.7% 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 (39.5%)
  • Excellent cash conversion (105%)
  • Net cash position ($1.2B)
  • Very low debt relative to cash flow (0.0x)
  • Strong liquidity (current ratio: 4.33)
  • Highly consistent quarterly FCF

Concerns

  • FCF trend declining (-18.7% YoY) but margin still healthy

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin39.5%
Net Margin39.0%
Operating CF Margin40.9%
CapEx Ratio1.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.2BCash exceeds debt
Debt / FCF0.0xManageable debt load
Current Ratio4.33Strong liquidity
Debt / Equity0.01Low leverage

Quarterly FCF Trend

-18.7% YoYDeclining (-18.7%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameZoom Communications, Inc.
SectorTechnology
Free Cash Flow$1.9B
Revenue$4.9B
Net Income$1.9B
Operating Cash Flow$2.0B
Capital Expenditure$65.5M
FCF Margin39.5%
Cash Conversion Rate104.7%
Net Margin39.0%
Total Debt$58.5M
Total Cash$1.3B
Net Cash$1.2B
Current Ratio4.33
Debt / Equity0.01
Debt / FCF0.0x
YoY FCF Growth-18.7%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJan 31, 2026
GradeA
Data SourceYahoo Finance