MCO MOODYS CORP /DE/

Overview and Growth

In fiscal 2025, MOODYS CORP /DE/ recorded $7.72B of revenue, net income of $2.46B, and an operating cash inflow of $2.90B. At $7.72B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 8.9% above fiscal 2024 revenue of $7.09B, marking a year-over-year increase. The company reported diluted EPS of $13.67, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $11.26 in fiscal 2024, the current result was 21.4% higher. The revenue-to-assets relationship was 0.49x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $5.75B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 74.4% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $3.35B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 43.4%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $2.46B for the fiscal year. The final earnings result represented 31.9% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $3.13B of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 40.6%, relating income before taxes directly to revenue. The reported income-tax provision was $668.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 21.3%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $15.83B of assets against $11.62B of liabilities and $4.21B of equity, revealing how the asset base was financed. The near-term balance sheet paired $5.19B of current assets with $2.98B of current liabilities at the reporting date. Current assets covered current liabilities by 1.74x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $2.38B, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 80.0% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $6.99B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 1.66x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 44.2% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 73.4% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 15.1%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 2.1% from $15.51B in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported $2.90B of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.18x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $326.00M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 11.2%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $2.58B, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 33.4%, showing how much sales converted into cash after investment. Free cash flow equaled 16.3% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.