Aureus
AExcellent

Equity Residential(EQR)

A

Financial data as of Dec 31, 2025Stable · Real Estate

FCF Margin41.7%Free Cash Flow / Revenue
Cash Conversion147.2%Operating CF / Net Income
Free Cash Flow$1.3B
Revenue$3.1B
Net Cash-$8.4BNet debt position
Debt / FCF6.6xElevated debt burden
Current Ratio0.15Tight short-term liquidity
YoY FCF Growth+1.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (6.6x)
→
+0.5Healthy FCF margin with manageable debt (41.7%, 6.6x)
→
-1Current ratio below 1.0 (0.15)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (41.7%)
  • Excellent cash conversion (147%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($8.4B net debt, 6.6x FCF)
  • High debt-to-FCF ratio (6.6x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin41.7%
Net Margin36.2%
Operating CF Margin53.3%
CapEx Ratio11.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.4BNet debt position
Debt / FCF6.6xElevated debt burden
Current Ratio0.15Tight liquidity
Debt / Equity0.77Low leverage

Quarterly FCF Trend

+1.6% YoYStable (+1.6%)

Free cash flow per quarter

Sector Comparison — Real Estate

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameEquity Residential
SectorReal Estate
Free Cash Flow$1.3B
Revenue$3.1B
Net Income$1.1B
Operating Cash Flow$1.6B
Capital Expenditure$359.1M
FCF Margin41.7%
Cash Conversion Rate147.2%
Net Margin36.2%
Total Debt$8.5B
Total Cash$55.9M
Net Cash-$8.4B
Current Ratio0.15
Debt / Equity0.77
Debt / FCF6.6x
YoY FCF Growth+1.6%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance