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Zoom Communications, Inc. key statistics and ratios

In fiscal 2026, Zoom Communications, Inc. had return on equity of 20.3%, an operating margin of 23.1% and a current ratio of 4.33. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2018Jan 20182019Jan 20192020Jan 20202021Jan 20212022Jan 20222023Jan 20232024Jan 20242025Jan 20252026Jan 2026LTMJul 2026
Gross margin79.7%81.5%81.5%69.0%74.3%74.9%76.2%75.8%77.0%77.3%
Operating margin−3.2%1.9%2.0%24.9%25.9%5.6%11.6%17.4%23.1%23.7%
Net margin−2.5%2.3%4.1%25.4%33.6%2.4%14.1%21.7%39.0%65.2%
Free-cash-flow margin6.4%6.9%18.3%52.5%35.9%27.0%32.5%38.8%39.5%38.6%
Return on equity——6.1%28.6%28.5%1.7%9.0%11.9%20.3%30.8%
Return on assets—2.1%3.1%20.4%21.4%1.3%7.1%9.7%16.6%25.5%
Asset turnover—0.930.760.800.640.560.500.450.420.39
Current ratio—1.823.283.803.913.664.504.564.333.83
Debt to equity—————————0.0%
Effective tax rate—9.2%4.0%0.8%−24.9%58.4%23.4%23.2%21.6%22.2%
R&D as % of revenue10.4%10.0%10.8%6.2%8.9%17.6%17.7%18.3%17.4%18.1%
Capital spending as % of revenue6.4%8.6%6.1%3.0%3.2%2.4%2.8%2.9%1.3%1.5%
Free cash flow ÷ net income—302.0%449.7%206.9%107.1%>999%230.9%179.0%101.3%59.2%
Dividends and buybacks ÷ free cash flow———0.0%0.0%84.3%0.0%60.5%84.2%75.8%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 2 checks passed · July 31, 2026
What it owns · $13.6bn
Short-term assets $8.1bnLonger-term assets $5.5bn
What it owes, and who funded it · $13.6bn
Short-term liabilities $2.1bnLonger-term liabilities $160mShareholders' equity $11.3bn
  • Short-term assets cover short-term liabilities $8.1bn of assets due within a year against $2.1bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $8.1bn short-term assets against $160m of longer-dated liabilities.
  • More cash than debt Cash or debt not separately reported. Not assessable.
  • Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
  • Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
  • A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Zoom Communications, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

58 /100

Moderate moat

How hard Zoom Communications's competitive advantage looks for rivals to wear away, judged from 8 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Cash operating profit has been a median 17.0% of total assets over 7 years.

  • Pricing power 19 / 20

    Gross margin has been a median 75.7%, moving by 2.7 percentage points (standard deviation) across 8 years.

  • Durability 7 / 20

    Operating margin has been a median 18.1%; its worst year was 1.8%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 8 of 8 years, at a median 38.0% of revenue.

  • Discipline 7 / 20

    The diluted share count fell 0.3% over five years; stock-based pay has been a median 15.9% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (73 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Zoom Communications, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Zoom Communications, Inc.