Aureus
AExcellent

The Travelers Companies, Inc.(TRV)

A

Financial data as of Dec 31, 2025Improving · Financials

FCF Margin21.7%Free Cash Flow / Revenue
Cash Conversion168.7%Operating CF / Net Income
Free Cash Flow$10.6B
Revenue$48.8B
Net Cash-$8.6BNet debt position
Debt / FCF0.9xManageable debt load
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth+30.1%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 (21.7%, 0.9x)
→
-0.5Current ratio below 1.0 (0.00) (reduced — strong FCF covers short-term obligations)
→
+1Strong YoY FCF growth (30.1% YoY)
→
+1Very low debt-to-FCF ratio (0.9x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (21.7%)
  • Excellent cash conversion (169%)
  • Very low debt relative to cash flow (0.9x)
  • Strong YoY FCF growth (+30.1%)

Concerns

  • Net debt position ($8.6B) — 0.9x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin21.7%
Net Margin12.9%
Operating CF Margin21.7%
CapEx Ratio0.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.6BNet debt position
Debt / FCF0.9xManageable debt load
Current Ratio0.00Tight liquidity
Debt / Equity0.28Low leverage

Quarterly FCF Trend

+30.1% YoYImproving (+30.1%)

Free cash flow per quarter

Sector Comparison — Financials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameThe Travelers Companies, Inc.
SectorFinancials
Free Cash Flow$10.6B
Revenue$48.8B
Net Income$6.3B
Operating Cash Flow$10.6B
Capital Expenditure$0
FCF Margin21.7%
Cash Conversion Rate168.7%
Net Margin12.9%
Total Debt$9.3B
Total Cash$710.0M
Net Cash-$8.6B
Current Ratio0.00
Debt / Equity0.28
Debt / FCF0.9x
YoY FCF Growth+30.1%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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