Forensic Analysis · Software & SaaS · as of Nov 8, 2026
Zoom Communications, Inc. (ZM)
A forensic read on Zoom Communications, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
A · High-quality, not compounding
Forensic grade
Safe
Financial health
10.6
Distress distance
Clean
Earnings quality
2
Forensic signals
20.3%
ROE
4.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Zoom Communications, Inc. earns an A (High-quality, not compounding) forensic quality grade, and its balance-sheet distress test reads 10.6, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+10.5%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +10.5% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $105.7M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by payables paid down 25% against -1% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 1% of net operating assets, against an accruals ratio of 10.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
10.7%
FY2026
Return on invested capital.Return on invested capital is 10.7% in the latest fiscal year and rising across FY2024–FY2026 from 6.1%. After-tax operating profit was $402M in FY2024 and $881M in FY2026, with operating income at 11.6% of revenue in FY2024, 17.4% in FY2025 and 23.1% in FY2026. The capital base behind it grew +24% across FY2024–FY2026, from $6.6B to $8.2B, and the return did not fall doing it, so the dollars added over that window earned at least the 6.1% the older base was already earning. $6.5B of the $8.2B base at FY2026 is short-term investments and long-term marketable securities (79.1%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns.
Key fundamentals
Latest Revenue$4.87B
Revenue Growth YoY+4.4%
Revenue CAGR (2yr)+3.7%
Net Margin39.0%
Free Cash Flow$1.92B
Return on Equity20.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Zoom Communications, Inc.'s actual 10-K/10-Q/8-K filings?