What is Zoom Communications Inc's earnings per share (EPS)?

Zoom Communications Inc (ZM) reported diluted earnings per share of $6.18 for fiscal year 2026. This represents a 92.5% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Zoom Communications Inc Financials

Source SEC Filings (10-K/10-Q) Updated Jan 31, 2026 Currency USD FYE January

This page shows Zoom Communications Inc (ZM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 9 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI ZM FY2026 2026-04-22

Zoom’s asset-light model now turns modest revenue growth into wider margins and cash-funded buybacks.

From FY2023 to FY2026, revenue barely moved, but operating income rose from $245M to $1.12B. Because gross margin stayed high near 75% while SG&A shrank to $393M, the rebound looks driven more by cost-discipline and fixed-cost absorption than by a new surge in demand.

In FY2026, free cash flow of $1.92B was very close to operating cash flow of $1.99B, which means accounting profit is being converted into spendable cash with little leakage. That points to a low-capital-intensity business: maintaining the platform requires relatively little reinvestment, so more operating cash remains available for other uses.

The balance sheet is supporting shareholder returns without looking stretched: current liquidity remained high at 4.3x, and the company repurchased $1.62B of stock in FY2026 while liabilities stayed comparatively contained. That combination suggests buybacks are being financed mainly by internally generated cash, not by leaning on outside borrowing.

Financial Health Signals

Financial Profile 72/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Zoom Communications Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Zoom Communications Inc has an operating margin of 23.1%, meaning the company retains $23 of operating profit per $100 of revenue. This strong profitability earns a score of 65/100, reflecting efficient cost management and pricing power. This is up from 17.4% the prior year.

Growth

Zoom Communications Inc's revenue grew a modest 4.4% year-over-year to $4.9B. This slow but positive growth earns a score of 40/100.

Leverage

Zoom Communications Inc carries a low D/E ratio of 0.22, meaning only $0.22 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 98/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

With a current ratio of 4.33, Zoom Communications Inc holds $4.33 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 86/100.

Cash Flow

100

Zoom Communications Inc converts 39.5% of revenue into free cash flow ($1.9B). This strong cash generation earns a score of 100/100.

Returns

Zoom Communications Inc's ROE of 19.4% shows moderate profitability relative to equity, earning a score of 44/100. This is up from 11.3% the prior year.

Altman Z-Score Safe

9.54

Zoom Communications Inc scores 9.54, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($26.9B) relative to total liabilities ($2.2B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

5/9

Zoom Communications Inc passes 5 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.05x

For every $1 of reported earnings, Zoom Communications Inc generates $1.05 in operating cash flow ($2.0B OCF vs $1.9B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$4.9B

YoY+4.4%

5Y CAGR+12.9%

Zoom Communications Inc generated $4.9B in revenue in fiscal year 2026. This represents an increase of 4.4% from the prior year.

EBITDA

$1.3B

YoY+34.2%

5Y CAGR+12.8%

Zoom Communications Inc's EBITDA was $1.3B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 34.2% from the prior year.

Net Income

$1.9B

YoY+88.1%

5Y CAGR+23.1%

Zoom Communications Inc reported $1.9B in net income in fiscal year 2026. This represents an increase of 88.1% from the prior year.

EPS (Diluted)

$6.18

YoY+92.5%

5Y CAGR+22.4%

Zoom Communications Inc earned $6.18 per diluted share (EPS) in fiscal year 2026. This represents an increase of 92.5% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$1.9B

YoY+6.4%

5Y CAGR+6.7%

Zoom Communications Inc generated $1.9B in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 6.4% from the prior year.

Cash & Debt

$1.3B

YoY+3.6%

5Y CAGR-4.0%

Zoom Communications Inc held $1.3B in cash against $0 in long-term debt as of fiscal year 2026.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

77.0%

YoY+1.2pp

5Y CAGR+8.0pp

Zoom Communications Inc's gross margin was 77.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.2 percentage points from the prior year.

Operating Margin

23.1%

YoY+5.6pp

5Y CAGR-1.8pp

Zoom Communications Inc's operating margin was 23.1% in fiscal year 2026, reflecting core business profitability. This is up 5.6 percentage points from the prior year.

Net Margin

39.0%

YoY+17.4pp

5Y CAGR+13.7pp

Zoom Communications Inc's net profit margin was 39.0% in fiscal year 2026, showing the share of revenue converted to profit. This is up 17.4 percentage points from the prior year.

Return on Equity

19.4%

YoY+8.0pp

5Y CAGR+3.3pp

Zoom Communications Inc's ROE was 19.4% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 8.0 percentage points from the prior year.

Capital Allocation

R&D Spending

$844.9M

YoY-0.9%

5Y CAGR+38.8%

Zoom Communications Inc invested $844.9M in research and development in fiscal year 2026. This represents a decrease of 0.9% from the prior year.

Share Buybacks

$1.6B

YoY+48.2%

Zoom Communications Inc spent $1.6B on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 48.2% from the prior year.

Capital Expenditures

$65.0M

YoY-52.4%

5Y CAGR-4.1%

Zoom Communications Inc invested $65.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 52.4% from the prior year.

ZM Income Statement

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Revenue	$4.9B+4.4%	$4.7B+3.1%	$4.5B+3.1%	$4.4B+7.1%	$4.1B+54.6%	$2.7B
Cost of Revenue	$1.1B-0.9%	$1.1B+4.8%	$1.1B-2.1%	$1.1B+4.4%	$1.1B+28.3%	$822.0M
Gross Profit	$3.7B+6.1%	$3.5B+2.5%	$3.4B+4.8%	$3.3B+8.1%	$3.0B+66.5%	$1.8B
R&D Expenses	$844.9M-0.9%	$852.4M+6.1%	$803.2M+3.8%	$774.1M+113.2%	$363.0M+121.2%	$164.1M
SG&A Expenses	$392.9M-11.2%	$442.7M-23.6%	$579.6M+0.6%	$576.4M+19.4%	$482.8M+50.6%	$320.5M
Operating Income	$1.1B+38.2%	$813.3M+54.8%	$525.3M+114.0%	$245.4M-76.9%	$1.1B+61.2%	$659.8M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$522.1M+71.0%	$305.3M+56.7%	$194.8M+33.9%	$145.6M+153.1%	-$274.0M-4892.0%	$5.7M
Net Income	$1.9B+88.1%	$1.0B+58.5%	$637.5M+514.7%	$103.7M-92.5%	$1.4B+104.6%	$672.3M
EPS (Diluted)	$6.18+92.5%	$3.21+55.1%	$2.07+508.8%	$0.34-92.4%	$4.50+100.0%	$2.25

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Revenue	$1.2B+1.4%	$1.2B+1.0%	$1.2B+3.6%	$1.2B-0.8%	$1.2B+0.6%	$1.2B+1.3%	$1.2B+1.9%	$1.1B
Cost of Revenue	$295.7M+8.8%	$271.8M-0.5%	$273.2M-1.9%	$278.4M-3.1%	$287.4M+1.2%	$283.9M-0.4%	$285.1M+4.3%	$273.3M
Gross Profit	$951.3M-0.7%	$958.1M+1.5%	$944.1M+5.3%	$896.3M-0.1%	$896.8M+0.3%	$893.7M+1.8%	$877.4M+1.1%	$867.9M
R&D Expenses	$222.9M+6.1%	$210.1M+1.8%	$206.4M+0.5%	$205.4M-5.4%	$217.1M-2.6%	$223.0M+7.8%	$206.8M+0.6%	$205.6M
SG&A Expenses	$119.0M+25.6%	$94.7M+23.2%	$76.9M-24.9%	$102.3M+6.9%	$95.7M-24.1%	$126.1M+15.2%	$109.5M-1.6%	$111.3M
Operating Income	$249.9M-19.5%	$310.4M-3.5%	$321.7M+33.2%	$241.6M+7.3%	$225.1M+23.1%	$182.8M-9.7%	$202.4M-0.3%	$203.0M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$189.6M+4.3%	$181.8M+103.0%	$89.6M+46.4%	$61.2M-25.8%	$82.5M+12.4%	$73.4M-0.7%	$73.9M-2.4%	$75.7M
Net Income	$674.1M+10.0%	$612.9M+70.9%	$358.6M+40.8%	$254.6M-30.8%	$367.9M+77.7%	$207.1M-5.5%	$219.0M+1.3%	$216.3M
EPS (Diluted)	N/A	$2.01+73.3%	$1.16+43.2%	$0.81	N/A	$0.66-5.7%	$0.70+1.4%	$0.69

ZM Balance Sheet

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Total Assets	$12.0B+9.2%	$11.0B+6.4%	$10.3B+20.6%	$8.5B+7.3%	$8.0B+35.1%	$5.9B
Current Assets	$8.7B-0.1%	$8.7B+4.6%	$8.3B+26.1%	$6.6B+0.1%	$6.6B+22.9%	$5.3B
Cash & Equivalents	$1.3B+3.6%	$1.2B-34.8%	$1.9B+83.1%	$1.0B-26.8%	$1.4B-9.6%	$1.6B
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$497.3M+4.2%	$477.2M-9.5%	$527.5M-10.7%	$590.7M+22.1%	$483.9M+32.1%	$366.3M
Goodwill	$400.4M+30.3%	$307.3M0.0%	$307.3M+1.0%	$304.2M+1001.8%	$27.6M+13.4%	$24.3M
Total Liabilities	$2.2B+5.0%	$2.0B+2.6%	$2.0B-0.7%	$2.0B+0.2%	$2.0B+18.5%	$1.7B
Current Liabilities	$2.0B+5.4%	$1.9B+2.2%	$1.9B+0.7%	$1.8B+1.9%	$1.8B+18.4%	$1.5B
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$9.8B+10.2%	$8.9B+7.3%	$8.3B+27.2%	$6.5B+9.7%	$5.9B+41.9%	$4.2B
Retained Earnings	$5.7B+40.6%	$4.1B+34.9%	$3.0B+38.7%	$2.2B+0.3%	$2.2B+140.2%	$900.0M

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Total Assets	$12.0B+5.0%	$11.4B+3.1%	$11.0B+0.8%	$11.0B-0.3%	$11.0B+2.9%	$10.7B+1.6%	$10.5B+2.0%	$10.3B
Current Assets	$8.7B-0.7%	$8.7B+0.6%	$8.7B0.0%	$8.7B-0.1%	$8.7B+1.7%	$8.5B+1.6%	$8.4B+1.4%	$8.3B
Cash & Equivalents	$1.3B+4.7%	$1.2B+1.4%	$1.2B-2.5%	$1.2B-8.9%	$1.3B+5.9%	$1.3B-17.3%	$1.5B-18.4%	$1.9B
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$497.3M+19.1%	$417.7M-19.2%	$516.8M+8.3%	$477.2M-3.6%	$495.2M+8.1%	$458.0M-13.3%	$528.2M+0.1%	$527.5M
Goodwill	$400.4M+30.3%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%	$307.3M
Total Liabilities	$2.2B+2.3%	$2.1B+0.5%	$2.1B+2.2%	$2.0B-0.2%	$2.1B+2.7%	$2.0B+0.9%	$2.0B-0.8%	$2.0B
Current Liabilities	$2.0B+2.0%	$2.0B+0.6%	$1.9B+2.7%	$1.9B-0.3%	$1.9B+2.7%	$1.9B+0.7%	$1.8B-0.8%	$1.9B
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$9.8B+5.6%	$9.3B+3.8%	$9.0B+0.5%	$8.9B-0.4%	$8.9B+2.9%	$8.7B+1.8%	$8.5B+2.7%	$8.3B
Retained Earnings	$5.7B+13.4%	$5.0B+13.9%	$4.4B+8.8%	$4.1B+6.7%	$3.8B+10.7%	$3.4B+6.4%	$3.2B+7.3%	$3.0B

ZM Cash Flow Statement

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Operating Cash Flow	$2.0B+2.2%	$1.9B+21.7%	$1.6B+23.9%	$1.3B-19.6%	$1.6B+9.1%	$1.5B
Capital Expenditures	$65.0M-52.4%	$136.6M+7.6%	$127.0M+22.3%	$103.8M-21.7%	$132.6M+65.8%	$80.0M
Free Cash Flow	$1.9B+6.4%	$1.8B+22.9%	$1.5B+24.1%	$1.2B-19.4%	$1.5B+5.9%	$1.4B
Investing Cash Flow	-$278.9M+74.8%	-$1.1B+6.6%	-$1.2B-271.9%	-$318.3M+88.9%	-$2.9B-83.0%	-$1.6B
Financing Cash Flow	-$1.8B-75.6%	-$1.0B-1808.2%	$60.2M+106.4%	-$936.9M-2850.2%	$34.1M-98.3%	$2.1B
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$1.6B+48.2%	$1.1B	$0-100.0%	$1.0B	$0	$0

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Operating Cash Flow	$354.5M-43.7%	$629.3M+22.0%	$515.9M+5.5%	$489.3M+15.2%	$424.6M-12.1%	$483.2M+7.5%	$449.3M-23.6%	$588.2M
Capital Expenditures	$16.1M+7.1%	$15.0M+88.4%	$8.0M-69.3%	$25.9M+210.9%	$8.3M-67.3%	$25.5M-69.7%	$84.2M+355.1%	$18.5M
Free Cash Flow	$338.4M-44.9%	$614.3M+20.9%	$508.0M+9.6%	$463.4M+11.3%	$416.2M-9.1%	$457.7M+25.4%	$365.1M-35.9%	$569.7M
Investing Cash Flow	$51.3M+135.5%	-$144.4M-137.9%	-$60.7M+51.5%	-$125.1M-2461.0%	-$4.9M+98.9%	-$452.4M+16.4%	-$540.9M-401.7%	-$107.8M
Financing Cash Flow	-$353.9M+24.1%	-$466.1M+5.8%	-$494.9M-0.9%	-$490.5M-49.1%	-$329.0M-9.5%	-$300.4M-17.2%	-$256.3M-79.9%	-$142.5M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$323.7M-21.8%	$413.7M-11.1%	$465.3M+11.3%	$418.0M+17.9%	$354.6M+17.6%	$301.6M+4.9%	$287.6M+91.7%	$150.0M

ZM Financial Ratios

Metric	FY26	FY25	FY24	FY23	FY22	FY21
Gross Margin	77.0%+1.2pp	75.8%-0.4pp	76.2%+1.2pp	75.0%+0.7pp	74.3%+5.3pp	69.0%
Operating Margin	23.1%+5.6pp	17.4%+5.8pp	11.6%+6.0pp	5.6%-20.4pp	25.9%+1.1pp	24.9%
Net Margin	39.0%+17.4pp	21.6%+7.6pp	14.1%+11.7pp	2.4%-31.2pp	33.6%+8.2pp	25.4%
Return on Equity	19.4%+8.0pp	11.3%+3.7pp	7.7%+6.1pp	1.6%-21.5pp	23.1%+7.1pp	16.0%
Return on Assets	15.9%+6.7pp	9.2%+3.0pp	6.2%+5.0pp	1.2%-16.1pp	17.3%+5.9pp	11.4%
Current Ratio	4.33-0.2	4.57+0.1	4.46+0.9	3.56-0.1	3.63+0.1	3.49
Debt-to-Equity	0.22-0.0	0.23-0.0	0.24-0.1	0.31-0.0	0.34-0.1	0.40
FCF Margin	39.5%+0.8pp	38.8%+6.3pp	32.5%+5.5pp	27.0%-8.9pp	35.9%-16.6pp	52.5%

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Gross Margin	76.3%-1.6pp	77.9%+0.3pp	77.6%+1.3pp	76.3%+0.6pp	75.7%-0.2pp	75.9%+0.4pp	75.5%-0.6pp	76.0%
Operating Margin	20.0%-5.2pp	25.2%-1.2pp	26.4%+5.9pp	20.6%+1.6pp	19.0%+3.5pp	15.5%-1.9pp	17.4%-0.4pp	17.8%
Net Margin	54.1%+4.2pp	49.8%+20.4pp	29.5%+7.8pp	21.7%-9.4pp	31.1%+13.5pp	17.6%-1.3pp	18.8%-0.1pp	18.9%
Return on Equity	6.9%+0.3pp	6.6%+2.6pp	4.0%+1.1pp	2.9%-1.3pp	4.1%+1.7pp	2.4%-0.2pp	2.6%-0.0pp	2.6%
Return on Assets	5.6%+0.3pp	5.4%+2.1pp	3.3%+0.9pp	2.3%-1.0pp	3.4%+1.4pp	1.9%-0.1pp	2.1%-0.0pp	2.1%
Current Ratio	4.33-0.1	4.450.0	4.45-0.1	4.570.0	4.56-0.0	4.60+0.0	4.56+0.1	4.46
Debt-to-Equity	0.220.0	0.230.0	0.230.0	0.230.0	0.230.0	0.230.0	0.230.0	0.24
FCF Margin	27.1%-22.8pp	50.0%+8.2pp	41.7%+2.3pp	39.4%+4.3pp	35.1%-3.7pp	38.9%+7.5pp	31.4%-18.5pp	49.9%

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Frequently Asked Questions

What is Zoom Communications Inc's annual revenue?

Zoom Communications Inc (ZM) reported $4.9B in total revenue for fiscal year 2026. This represents a 4.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Zoom Communications Inc's revenue growing?

Zoom Communications Inc (ZM) revenue grew by 4.4% year-over-year, from $4.7B to $4.9B in fiscal year 2026.

Is Zoom Communications Inc profitable?

Yes, Zoom Communications Inc (ZM) reported a net income of $1.9B in fiscal year 2026, with a net profit margin of 39.0%.

What is Zoom Communications Inc's EBITDA?

Zoom Communications Inc (ZM) had EBITDA of $1.3B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

What is Zoom Communications Inc's gross margin?

Zoom Communications Inc (ZM) had a gross margin of 77.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

What is Zoom Communications Inc's operating margin?

Zoom Communications Inc (ZM) had an operating margin of 23.1% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

What is Zoom Communications Inc's net profit margin?

Zoom Communications Inc (ZM) had a net profit margin of 39.0% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

What is Zoom Communications Inc's return on equity (ROE)?

Zoom Communications Inc (ZM) has a return on equity of 19.4% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is Zoom Communications Inc's free cash flow?

Zoom Communications Inc (ZM) generated $1.9B in free cash flow during fiscal year 2026. This represents a 6.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Zoom Communications Inc's operating cash flow?

Zoom Communications Inc (ZM) generated $2.0B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

What are Zoom Communications Inc's total assets?

Zoom Communications Inc (ZM) had $12.0B in total assets as of fiscal year 2026, including both current and long-term assets.

What are Zoom Communications Inc's capital expenditures?

Zoom Communications Inc (ZM) invested $65.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

How much does Zoom Communications Inc spend on research and development?

Zoom Communications Inc (ZM) invested $844.9M in research and development during fiscal year 2026.

Does Zoom Communications Inc buy back shares?

Yes, Zoom Communications Inc (ZM) spent $1.6B on share buybacks during fiscal year 2026, returning capital to shareholders by reducing shares outstanding.

What is Zoom Communications Inc's current ratio?

Zoom Communications Inc (ZM) had a current ratio of 4.33 as of fiscal year 2026, which is generally considered healthy.

What is Zoom Communications Inc's debt-to-equity ratio?

Zoom Communications Inc (ZM) had a debt-to-equity ratio of 0.22 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Zoom Communications Inc's return on assets (ROA)?

Zoom Communications Inc (ZM) had a return on assets of 15.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is Zoom Communications Inc's Altman Z-Score?

Zoom Communications Inc (ZM) has an Altman Z-Score of 9.54, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Zoom Communications Inc's Piotroski F-Score?

Zoom Communications Inc (ZM) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Zoom Communications Inc's earnings high quality?

Zoom Communications Inc (ZM) has an earnings quality ratio of 1.05x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Zoom Communications Inc?

Zoom Communications Inc (ZM) scores 72 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.