Zoom Communications, Inc. cash flow to debt ratio of 3.40K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Zoom Communications, Inc.'s free cash flow has increased 6.38% from $1.81B last year to $1.92B, signaling increasing performance

Zoom Communications, Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability.

Zoom Communications, Inc.'s debt has increased relative to shareholder equity from 0.01 last year to 0.01 today, signaling weakened financials

Zoom Communications, Inc. has a net cash position, so leverage is healthy.

Interest expense is not separately reported in Zoom Communications, Inc.'s latest filing, so interest coverage cannot be calculated.

Zoom Communications, Inc.'s profit margin has increased (93.90%) in the last year from 21.65% to 41.99%, signaling increasing performance

Zoom Communications, Inc.'s short-term assets of $8.66B exceed its short-term liabilities of $2.00B

Zoom Communications, Inc.'s return on assets of 17.03% is higher than the 5.00% threshold, indicating efficient asset utilization

Zoom Communications, Inc.'s return on equity of 21.79%, is higher than 15.00%, indicating good performance

Zoom Communications, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Zoom Communications, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Zoom Communications, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Zoom Communications, Inc. has a free cash flow yield of 6.12%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Zoom Communications, Inc.'s yearly earnings has increased 88.09% since last year from $1.01B to $1.90B, signaling increasing performance

Zoom Communications, Inc.'s yearly revenue has increased 4.36% since last year from $4.67B to $4.87B, signaling increasing performance

ROIC 9.22% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Zoom Communications, Inc.'s 3-year revenue CAGR of 3.49% is positive, indicating growing revenue over the past 3 years

Zoom Communications, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Zoom Communications, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Zoom Communications, Inc. is overvalued relative to its fair value price of 105.31 based on Discounted Cash Flow model

Zoom Communications, Inc. has an earnings yield of 6.56%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Zoom Communications, Inc. is overvalued relative to its fair value price of 64.51 based on EBITDA multiple model

Zoom Communications, Inc. has an EV/EBITDA ratio of 9.27x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Zoom Communications, Inc. is overvalued relative to its fair value price of 42.26 based on Earnings Fair Value model

Zoom Communications, Inc. has a PEG-ratio under 1 which is considered undervalued

Zoom Communications, Inc. has a price-to-book ratio of 3.17x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Zoom Communications, Inc. has a price-to-sales ratio of 6.40x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue