Moody's Corporation (MCO) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 23, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q3 FY2026, filed Oct 21, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the MCO SEC filings page.
Moody's Corporation (MCO) reported $8.2B in revenue over the twelve months to Sep 30, 2026, up 9.0% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Moody’s converts revenue growth into faster profit expansion, but cash growth lags and much of generated cash returns to shareholders.
The widening gap between net income of$2.459B and operating cash flow of$2.901B matters because operating cash flow increased only2.2% , versus net income’s19.5% . This suggests FY2025’s accounting improvement was not matched by comparable cash conversion.
FY2025 revenue increased
Despite ongoing leverage, debt-to-equity declined from 2.1x in FY2023 to 1.7x in FY2025, as equity grew faster than liabilities. Buybacks of
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Moody's Corporation'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.
Moody's Corporation has an operating margin of 43.4%, meaning the company retains $43 of operating profit per $100 of revenue. This strong profitability earns a score of 94/100, reflecting efficient cost management and pricing power. This is up from 40.6% the prior year.
Moody's Corporation's revenue grew 8.9% year-over-year to $7.7B, a solid pace of expansion. This earns a growth score of 74/100.
Moody's Corporation has a moderate D/E ratio of 1.73. This balance of debt and equity financing earns a leverage score of 43/100.
Moody's Corporation's current ratio of 1.74 indicates adequate short-term liquidity, earning a score of 51/100. The company can meet its near-term obligations, though with limited headroom.
Moody's Corporation converts 33.4% of revenue into free cash flow ($2.6B). This strong cash generation earns a score of 96/100.
Moody's Corporation earns a strong 60.7% return on equity (ROE), meaning it generates $61 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 89/100. This is up from 57.7% the prior year.
Moody's Corporation scores 7.23, well above the 2.99 safe threshold. The largest contribution to the score comes from a market capitalization of $83.4B against total liabilities of $11.6B. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Moody's Corporation passes 8 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Moody's Corporation generates $1.18 in operating cash flow ($2.9B OCF vs $2.5B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Moody's Corporation earns $13.35 in operating income for every $1 of interest expense ($3.4B vs $251.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Moody's Corporation generated $2.0B in revenue in Q3 2026. This represents an increase of 0.8% from the same quarter a year earlier. Against the prior quarter it is down 7.4%.
Moody's Corporation's EBITDA was $1.0B in Q3 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 1.0% from the same quarter a year earlier. Against the prior quarter it is down 12.1%.
Moody's Corporation reported $734.0M in net income in Q3 2026. This represents an increase of 13.6% from the same quarter a year earlier. Against the prior quarter it is down 16.4%.
Moody's Corporation earned $4.24 per diluted share (EPS) in Q3 2026. This represents an increase of 17.8% from the same quarter a year earlier. Against the prior quarter it is down 15.7%.
Cash & Balance Sheet
Moody's Corporation generated $668.0M in free cash flow in Q3 2026, representing cash available after capex. This represents an increase of 1.5% from the same quarter a year earlier. Against the prior quarter it is down 2.9%.
Moody's Corporation held $1.5B in cash against $6.3B in long-term debt as of Q3 2026.
Moody's Corporation paid $1.03 per share in dividends in Q3 2026. This represents an increase of 9.6% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Moody's Corporation's gross margin was 74.1% in Q3 2026, indicating the percentage of revenue retained after direct costs. This is down 1.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.2 percentage points.
Moody's Corporation's operating margin was 44.8% in Q3 2026, reflecting core business profitability. This is down 0.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.1 percentage points.
Moody's Corporation's net profit margin was 36.3% in Q3 2026, showing the share of revenue converted to profit. This is up 4.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.9 percentage points.
Moody's Corporation's quarterly ROE was 22.5% in Q3 2026: one quarter's net income over shareholder equity, not annualized. This is up 6.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 6.6 percentage points.
Capital Allocation
Moody's Corporation spent $388.0M on share buybacks in Q3 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 24.4% from the same quarter a year earlier. Against the prior quarter it is down 44.1%.
Moody's Corporation invested $85.0M in capex in Q3 2026, funding long-term assets and infrastructure. That is unchanged from the same quarter a year earlier. Against the prior quarter it is down 6.6%.
Not reported for Q3 2026.
MCO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.0B+0.8% | $2.2B+15.1% | $2.1B+8.1% | $1.9B+13.0% | $2.0B+10.7% | $1.9B+4.5% | $1.9B+7.7% | $1.7B+13.0% |
| Cost of Revenue | $524.0M+6.5% | $518.0M+5.9% | $531.0M+8.1% | $501.0M+0.8% | $492.0M-3.9% | $489.0M+4.3% | $491.0M+5.1% | $497.0M+18.1% |
| Gross Profit | $1.5B-1.1% | $1.7B+18.3% | $1.5B+8.0% | $1.4B+18.1% | $1.5B+16.4% | $1.4B+4.5% | $1.4B+8.6% | $1.2B+11.0% |
| SG&A Expenses | $442.0M-2.4% | $463.0M+4.5% | $477.0M+8.7% | $468.0M+5.9% | $453.0M+4.4% | $443.0M-0.7% | $439.0M+6.3% | $442.0M+3.3% |
| Operating Income | $906.0M-1.2% | $1.0B+27.9% | $922.0M+9.0% | $770.0M+37.3% | $917.0M+24.3% | $818.0M+5.5% | $846.0M+5.6% | $561.0M+12.7% |
| EBITDA | $1.0B-1.0% | $1.2B+24.9% | $1.0B+8.9% | $894.0M+32.6% | $1.0B+22.9% | $938.0M+6.0% | $959.0M+6.4% | $674.0M+13.3% |
| Interest Expense | $55.0M-6.8% | $55.0M-11.3% | $55.0M-23.6% | $58.0M-20.5% | $59.0M-25.3% | $62.0M-16.2% | $72.0M-2.7% | $73.0M-3.9% |
| Income Tax | $232.0M+5.5% | $292.0M+51.3% | $209.0M+16.8% | $76.0M-41.5% | $220.0M+30.2% | $193.0M+16.3% | $179.0M+2.3% | $130.0M+18.2% |
| Net Income | $734.0M+13.6% | $878.0M+51.9% | $661.0M+5.8% | $610.0M+54.4% | $646.0M+21.0% | $578.0M+4.7% | $625.0M+8.3% | $395.0M+16.2% |
| EPS (Basic) | $4.25+17.7% | $5.04+56.5% | $3.74+7.8% | $3.43+56.6% | $3.61+22.8% | $3.22+6.3% | $3.47+9.8% | $2.19+17.7% |
| EPS (Diluted) | $4.24+17.8% | $5.03+56.7% | $3.73+7.8% | $3.41+57.1% | $3.60+22.9% | $3.21+6.3% | $3.46+9.8% | $2.17+17.3% |
| Diluted Shares (Avg) | 173M-3.5% | 175M-3.2% | 177M-1.9% | N/A | 180M-1.6% | 180M-1.5% | 181M-1.5% | N/A |
Not reported in any period shown, so not listed: R&D Expenses.
MCO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $14.8B-3.8% | $14.7B-5.2% | $14.7B-2.4% | $15.8B+2.1% | $15.4B-2.2% | $15.5B+3.2% | $15.1B+0.6% | $15.5B+6.0% |
| Current Assets | $4.2B-8.2% | $4.0B-14.2% | $4.2B-7.7% | $5.2B-2.0% | $4.6B-14.7% | $4.6B-5.0% | $4.6B-5.0% | $5.3B+21.9% |
| Cash & Equivalents | $1.5B-30.6% | $1.5B-32.5% | $1.5B-31.3% | $2.4B-1.0% | $2.2B-17.4% | $2.2B-17.5% | $2.1B-13.6% | $2.4B+13.1% |
| Short-Term Investments | $108.0M+38.5% | $29.0M-75.0% | $41.0M-33.9% | $64.0M-88.7% | $78.0M-86.4% | $116.0M+84.1% | $62.0M+6.9% | $566.0M+798.4% |
| Accounts Receivable | $1.8B+3.2% | $1.9B+8.1% | $2.0B+10.5% | $2.0B+12.4% | $1.8B+3.9% | $1.8B+4.8% | $1.9B+0.8% | $1.8B+8.6% |
| Long-Term Investments | $92.0M-13.2% | $103.0M-1.0% | $99.0M-5.7% | $110.0M+12.2% | $106.0M-6.2% | $104.0M-3.7% | $105.0M-4.5% | $98.0M-2.0% |
| Goodwill | $6.3B-2.5% | $6.3B-2.5% | $6.3B+1.6% | $6.4B+6.2% | $6.5B+5.2% | $6.5B+10.0% | $6.2B+5.6% | $6.0B+0.6% |
| Total Liabilities | $11.4B+1.0% | $11.5B+1.1% | $11.6B+3.1% | $11.6B-1.3% | $11.3B-3.4% | $11.4B+2.7% | $11.2B-0.3% | $11.8B+5.7% |
| Current Liabilities | $3.3B+31.3% | $3.3B+26.4% | $3.6B+24.9% | $3.0B-17.1% | $2.5B-22.8% | $2.6B-17.8% | $2.9B-13.7% | $3.6B+43.9% |
| Non-Current Liabilities | $8.1B-7.6% | $8.2B-6.5% | $7.9B-4.5% | $8.6B+5.7% | $8.8B+4.0% | $8.7B+11.2% | $8.3B+5.4% | $8.2B-5.4% |
| Long-Term Debt | $6.3B-9.2% | $6.4B-8.5% | $6.4B-6.4% | $7.0B+3.9% | $7.0B+1.6% | $7.0B+11.4% | $6.8B+9.0% | $6.7B-3.9% |
| Total Equity | $3.3B-17.4% | $3.0B-23.4% | $3.0B-19.1% | $4.1B+13.7% | $4.0B+1.3% | $3.9B+4.5% | $3.7B+3.5% | $3.6B+7.4% |
| Retained Earnings | $19.6B+12.5% | $19.0B+12.4% | $18.3B+10.9% | $17.9B+11.1% | $17.4B+9.8% | $16.9B+9.4% | $16.5B+9.6% | $16.1B+9.6% |
Not reported in any period shown, so not listed: Inventory.
MCO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $753.0M+1.3% | $779.0M+43.5% | $939.0M+24.0% | $858.0M+27.3% | $743.0M+5.7% | $543.0M-20.8% | $757.0M-2.3% | $674.0M+41.3% |
| Depreciation & Amortization | $124.0M+0.8% | $126.0M+5.0% | $122.0M+8.0% | $124.0M+9.7% | $123.0M+13.9% | $120.0M+9.1% | $113.0M+13.0% | $113.0M+16.5% |
| Stock-Based Compensation | $58.0M0.0% | $60.0M-1.6% | $58.0M+3.6% | N/A | $58.0M+1.8% | $61.0M+8.9% | $56.0M+5.7% | N/A |
| Capital Expenditures | $85.0M0.0% | $91.0M+21.3% | $95.0M+11.8% | $81.0M+9.5% | $85.0M+18.1% | $75.0M-19.4% | $85.0M+9.0% | $74.0M+1.4% |
| Free Cash Flow | $668.0M+1.5% | $688.0M+47.0% | $844.0M+25.6% | $777.0M+29.5% | $658.0M+4.3% | $468.0M-21.1% | $672.0M-3.6% | $600.0M+48.5% |
| Investing Cash Flow | -$151.0Mn/m | $112.0Mn/m | -$91.0M-140.6% | -$42.0Mn/m | -$54.0Mn/m | -$126.0Mn/m | $224.0Mn/m | -$181.0Mn/m |
| Financing Cash Flow | -$561.0Mn/m | -$910.0Mn/m | -$1.7Bn/m | -$609.0Mn/m | -$674.0Mn/m | -$482.0Mn/m | -$1.3Bn/m | -$634.0Mn/m |
| Dividends Paid | $179.0M+3.5% | $189.0M+10.5% | $185.0M-5.1% | $167.0M+7.7% | $173.0M+6.8% | $171.0M+9.6% | $195.0M+25.8% | $155.0M+10.7% |
| Share Buybacks | $388.0M-24.4% | $694.0M+144.4% | $1.5B+294.4% | $437.0M-9.0% | $513.0M+19.9% | $284.0M+7.6% | $373.0M+210.8% | $480.0M+126.4% |
MCO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.1%-1.4pp | 76.3%+2.1pp | 74.5%0.0pp | 73.5%+3.2pp | 75.5%+3.7pp | 74.2%0.0pp | 74.5%+0.6pp | 70.3%-1.3pp |
| Operating Margin | 44.8%-0.9pp | 47.9%+4.8pp | 44.4%+0.4pp | 40.8%+7.2pp | 45.7%+5.0pp | 43.1%+0.5pp | 44.0%-0.9pp | 33.6%-0.1pp |
| Net Margin | 36.3%+4.1pp | 40.2%+9.7pp | 31.8%-0.7pp | 32.3%+8.7pp | 32.2%+2.7pp | 30.4%+0.1pp | 32.5%+0.2pp | 23.6%+0.7pp |
| Return on Equity | 22.5%+6.1pp | 29.0%+14.4pp | 22.1%+5.2pp | 15.0%+4.0pp | 16.3%+2.7pp | 14.6%0.0pp | 16.9%+0.8pp | 11.1%+0.8pp |
| Return on Assets | 5.0%+0.8pp | 6.0%+2.3pp | 4.5%+0.4pp | 3.9%+1.3pp | 4.2%+0.8pp | 3.7%+0.1pp | 4.1%+0.3pp | 2.5%+0.2pp |
| Current Ratio | 1.29-0.6x | 1.19-0.6x | 1.16-0.4x | 1.74+0.3x | 1.84+0.2x | 1.75+0.2x | 1.56+0.1x | 1.47-0.3x |
| Debt-to-Equity | 1.94+0.2x | 2.11+0.3x | 2.13+0.3x | 1.73-0.2x | 1.760.0x | 1.76+0.1x | 1.84+0.1x | 1.89-0.2x |
| Liabilities-to-Equity | 3.49+0.6x | 3.80+0.9x | 3.87+0.8x | 2.87-0.4x | 2.86-0.1x | 2.880.0x | 3.04-0.1x | 3.30-0.1x |
| Asset Turnover | 0.140.0x | 0.150.0x | 0.140.0x | 0.120.0x | 0.130.0x | 0.120.0x | 0.130.0x | 0.110.0x |
| FCF Margin | 33.0%+0.2pp | 31.5%+6.8pp | 40.6%+5.7pp | 41.1%+5.2pp | 32.8%-2.0pp | 24.7%-8.0pp | 34.9%-4.1pp | 35.9%+8.6pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Moody's Corporation MCO | FY2025 | $7.7B | $2.5B | 31.9% | $83.4B | 75/100 |
| Intercontinental Exchange Inc. ICE | FY2025 | $12.6B | $3.3B | 26.2% | $91.4B | 63/100 |
| CME Group Inc. CME | FY2025 | $6.5B | $4.1B | 62.5% | $109.4B | 60/100 |
| Coinbase Global, Inc. COIN | FY2025 | $7.2B | $1.3B | 17.5% | $43.4B | 72/100 |
| S&P Global Inc. SPGI | FY2025 | $15.3B | $4.5B | 29.1% | $132.8B | 61/100 |
| Nasdaq, Inc. NDAQ | FY2025 | $8.3B | $1.8B | 21.6% | $57.3B | 61/100 |
Where Moody's Corporation Ranks
Frequently Asked Questions
What is Moody's Corporation's annual revenue?
Moody's Corporation (MCO) reported $7.7B in total revenue for fiscal year 2025. This represents a 8.9% 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 Moody's Corporation's revenue growing?
Moody's Corporation (MCO) revenue grew by 8.9% year-over-year, from $7.1B to $7.7B in fiscal year 2025.
Is Moody's Corporation profitable?
Yes, Moody's Corporation (MCO) reported a net income of $2.9B over the trailing 12 months to September 30, 2026. In fiscal year 2025 it reported a net income of $2.5B, with a net profit margin of 31.9%.
What is Moody's Corporation's EBITDA?
Moody's Corporation (MCO) had EBITDA of $3.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Moody's Corporation have?
As of fiscal year 2025, Moody's Corporation (MCO) had $2.4B in cash and equivalents against $7.0B in long-term debt.
What is Moody's Corporation's gross margin?
Moody's Corporation (MCO) had a gross margin of 74.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Moody's Corporation's operating margin?
Moody's Corporation (MCO) had an operating margin of 43.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Moody's Corporation's net profit margin?
Moody's Corporation (MCO) had a net profit margin of 31.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Moody's Corporation pay dividends?
Yes, Moody's Corporation (MCO) paid $3.76 per share in dividends during fiscal year 2025.
What is Moody's Corporation's return on equity (ROE)?
Moody's Corporation (MCO) has a return on equity of 60.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Moody's Corporation's free cash flow?
Moody's Corporation (MCO) generated $2.6B in free cash flow during fiscal year 2025. This represents a 2.1% 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 Moody's Corporation's operating cash flow?
Moody's Corporation (MCO) generated $2.9B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Moody's Corporation's total assets?
Moody's Corporation (MCO) had $15.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Moody's Corporation's capital expenditures?
Moody's Corporation (MCO) invested $326.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Moody's Corporation's current ratio?
Moody's Corporation (MCO) had a current ratio of 1.74 as of fiscal year 2025, which is generally considered healthy.
What is Moody's Corporation's debt-to-equity ratio?
Moody's Corporation (MCO) had a debt-to-equity ratio of 1.73 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
What is Moody's Corporation's liabilities-to-equity ratio?
Moody's Corporation (MCO) had a liabilities-to-equity ratio of 2.87 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
What is Moody's Corporation's return on assets (ROA)?
Moody's Corporation (MCO) had a return on assets of 15.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Moody's Corporation's P/E ratio?
Moody's Corporation (MCO) trades at 28.9x earnings, its market capitalization divided by $2.9B net income, trailing 12 months to September 30, 2026. The market capitalization is $83.4B as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Moody's Corporation's price-to-sales ratio?
Moody's Corporation (MCO) trades at 10.2x sales, its market capitalization divided by $8.2B revenue, trailing 12 months to September 30, 2026. The market capitalization is $83.4B as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Moody's Corporation's Altman Z-Score?
Moody's Corporation (MCO) has an Altman Z-Score of 7.23, 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 Moody's Corporation's Piotroski F-Score?
Moody's Corporation (MCO) has a Piotroski F-Score of 8 out of 9, indicating strong 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 Moody's Corporation's earnings high quality?
Moody's Corporation (MCO) has an earnings quality ratio of 1.18x, 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.
Can Moody's Corporation cover its interest payments?
Moody's Corporation (MCO) has an interest coverage ratio of 13.35x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Moody's Corporation?
Moody's Corporation (MCO) scores 75 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.