Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$9.6B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$1.5B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
C
Price-to-Book2.19x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$287M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income49.8%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$466M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About AvalonBay Communities Inc
AvalonBay Communities, Inc., a member of S&P 500, is an equity REIT. The firm develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in Boston, Massachusetts, the New York/New Jersey Metro area, the Mid-Atlantic, Seattle, Washington, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of June 30, 2026, the Company owned or held a direct or indirect ownership interest in 322 apartment communities containing 99,072 apartment homes in 11 states and the District of Columbia, of which 27 communities were under development and one community was under redevelopment. AvalonBay Communities, Inc. was incorporated in 1978 in Maryland and is based in Arlington, Virginia.
AvalonBay Communities, Inc., a member of S&P 500, is an equity REIT. The firm develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in Boston, Massachusetts, the New York/New Jersey Metro area, the Mid-Atlantic, Seattle, Washington, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. As of June 30, 2026, the Company owned or held a direct or indirect ownership interest in 322 apartment communities containing 99,072 apartment homes in 11 states and the District of Columbia, of which 27 communities were under development and one community was under redevelopment. AvalonBay Communities, Inc. was incorporated in 1978 in Maryland and is based in Arlington, Virginia.
Metric Explanations
What each dimension measures and where the thresholds come from.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
164,733
Reconciled Depreciation
233,387
Reconciled Cost Of Revenue
281,857
EBITDA
468,183
EBIT
234,796
Net Interest Income
-61,512
Interest Expense
69,106
Interest Income
7,594
Normalized Income
188,992
Net Income From Continuing And Discontinued Operation
164,733
Total Expenses
537,118
Diluted Average Shares
773,779
396,582
Basic Average Shares
773,779
393,326
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
165,985
Average Dilution Earnings
1,566
Net Income Common Stockholders
164,419
Otherunder Preferred Stock Dividend
314
Net Income
164,733
Minority Interests
-1,252
Net Income Including Noncontrolling Interests
165,985
Net Income Continuous Operations
165,985
Tax Provision
-295
Pretax Income
165,690
Other Income Expense
-3,536
Other Non Operating Income Expenses
-10,634
Special Income Charges
7,843
Gain On Sale Of Ppe
-368
Other Special Charges
418
Restructuring And Mergern Acquisition
Earnings From Equity Interest
Gain On Sale Of Security
Net Non Operating Interest Income Expense
-61,512
Interest Expense Non Operating
69,106
Interest Income Non Operating
7,594
Operating Income
230,738
Operating Expense
255,261
Depreciation Amortization Depletion Income Statement
233,387
Depreciation And Amortization In Income Statement
233,387
Depreciation Income Statement
233,387
Selling General And Administration
21,874
General And Administrative Expense
21,874
Other Gand A
21,874
Gross Profit
485,999
Cost Of Revenue
281,857
Total Revenue
767,856
Operating Revenue
767,856
Balance Sheet
2026
2025
Ordinary Shares Number
396,258
391,245
Share Issued
396,258
391,245
Net Debt
8,944,098
9,141,318
Total Debt
9,187,224
9,493,752
Tangible Book Value
12,022,411
11,611,340
Invested Capital
21,047,191
20,939,892
Working Capital
-1,491,922
-1,189,904
Net Tangible Assets
12,022,411
11,611,340
Capital Lease Obligations
162,444
165,200
Common Stock Equity
12,022,411
11,611,340
Total Capitalization
20,131,405
20,200,284
Total Equity Gross Minority Interest
12,228,658
11,834,317
Minority Interest
206,247
222,977
Stockholders Equity
12,022,411
11,611,340
Gains Losses Not Affecting Retained Earnings
38,896
26,486
Other Equity Adjustments
38,896
26,486
Retained Earnings
242,188
371,157
Additional Paid In Capital
11,739,908
11,212,296
Capital Stock
1,419
1,401
Common Stock
1,419
1,401
Total Liabilities Net Minority Interest
10,071,693
10,357,820
Total Non Current Liabilities Net Minority Interest
8,333,653
8,814,833
Other Non Current Liabilities
62,215
60,689
Long Term Debt And Capital Lease Obligation
8,271,438
8,754,144
Long Term Capital Lease Obligation
162,444
165,200
Long Term Debt
8,108,994
8,588,944
Current Liabilities
1,738,040
1,542,987
Current Debt And Capital Lease Obligation
915,786
739,608
Current Debt
915,786
739,608
Line Of Credit
915,786
739,608
Payables And Accrued Expenses
822,254
803,379
Current Accrued Expenses
451,715
460,564
Interest Payable
65,814
68,591
Payables
370,539
342,815
Dividends Payable
256,954
250,548
Accounts Payable
113,585
92,267
Total Assets
22,300,351
22,192,137
Total Non Current Assets
22,054,233
21,839,054
Other Non Current Assets
660,707
618,597
Non Current Deferred Assets
75,440
73,237
Investments And Advances
199,046
193,441
Long Term Equity Investment
199,046
193,441
Investmentsin Associatesat Cost
Investment Properties
20,974,899
20,806,242
Net PPE
144,141
147,537
Gross PPE
144,141
147,537
Other Properties
144,141
147,537
Current Assets
246,118
353,083
Restricted Cash
165,436
165,849
Cash Cash Equivalents And Short Term Investments
80,682
187,234
Cash And Cash Equivalents
80,682
187,234
Cash Flow
2026
2025
Free Cash Flow
286,527
321,807
Repurchase Of Capital Stock
0
-336,269
Repayment Of Debt
-484,171
-300,973
Issuance Of Debt
146,064
904,451
Issuance Of Capital Stock
609,806
83,268
Capital Expenditure
-77,612
-78,624
Interest Paid Supplemental Data
77,643
73,217
End Cash Position
246,118
353,083
Beginning Cash Position
291,094
321,891
Changes In Cash
-44,976
31,192
Financing Cash Flow
7,786
98,051
Cash Flow From Continuing Financing Activities
7,786
98,051
Net Other Financing Charges
-14,419
-2,972
Cash Dividends Paid
-249,494
-249,454
Common Stock Dividend Paid
Net Common Stock Issuance
609,806
-253,001
Common Stock Payments
0
-336,269
Common Stock Issuance
609,806
83,268
Net Issuance Payments Of Debt
-338,107
603,478
Net Short Term Debt Issuance
504,627
Short Term Debt Issuance
504,627
Net Long Term Debt Issuance
-514,285
98,851
Long Term Debt Payments
-484,171
-300,973
Long Term Debt Issuance
-30,114
399,824
Investing Cash Flow
-416,901
-467,290
Cash Flow From Continuing Investing Activities
-416,901
-467,290
Net Other Investing Changes
-21,870
5,633
Dividends Received Cfi
0
7,500
Net Investment Properties Purchase And Sale
-314,076
-397,671
Sale Of Investment Properties
0
172
Purchase Of Investment Properties
-314,076
-397,843
Net Business Purchase And Sale
-3,343
-4,128
Purchase Of Business
Capital Expenditure Reported
-77,612
-78,624
Operating Cash Flow
364,139
400,431
Cash Flow From Continuing Operating Activities
364,139
400,431
Change In Working Capital
-41,909
-19,478
Change In Payables And Accrued Expense
-13,451
-25,537
Change In Accrued Expense
-13,451
-25,537
Change In Prepaid Assets
-21,018
32,183
Change In Receivables
-7,440
Other Non Cash Items
11,210
7,005
Stock Based Compensation
8,030
5,190
Asset Impairment Charge
0
Depreciation Amortization Depletion
232,975
233,387
Depreciation And Amortization
232,975
233,387
Depreciation
232,975
233,387
Operating Gains Losses
-3,060
9,200
Earnings Losses From Equity Investments
-2,602
9,384
Gain Loss On Investment Securities
-458
-184
Net Income From Continuing Operations
156,893
165,985
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.14x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$287M
vs Positive
Operating Cash Flow
$364M
Latest quarter · Buffett's cash reality check
ROIC
nan%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
2.1x
Net Assets: $12.2B
Peers & Industry
No auto-detected peers for REIT - Residential. You can manually compare AVB against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.40%
Low — management has little skin in the game
Share Buybacks (Latest Year)
$488M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-3.5% YoY
Debt is declining — management is deleveraging
Leadership Team
Benjamin Schall
President, CEO & Director
Age 50
Pay: $2,861,400
Kevin O'Shea
Chief Financial Officer
Age 59
Pay: $1,665,470
Sean Breslin
Chief Operating Officer
Age 58
Pay: $1,804,951
Pamela Thomas
Executive Vice President of Portfolio & Asset Management
Age 59
Pay: $1,512,905
Alaine Walsh
Executive Vice President of Human Capital & Administration
Age 53
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
12.50%
17,852,876
Vanguard Portfolio Management LLC
8.48%
12,116,343
Vanguard Capital Management LLC
6.37%
9,091,308
State Street Corporation
6.35%
9,062,583
NORGES BANK
5.39%
7,691,120
JPMORGAN CHASE & CO
3.21%
4,577,744
Geode Capital Management, LLC
2.99%
4,273,269
Price (T.Rowe) Associates Inc
2.84%
4,060,560
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.77
Low volatility — more stable than the market
Short Interest
3.6% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.75x
Conservative balance sheet — low financial risk
Current Ratio
0.34x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $57.32Current: $184.06High: $185.62
Currently at 99% of 52-week range
AvalonBay Communities Inc (AVB) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: N/A. Operating margin: N/A. Net margin: N/A. Market cap: $26.3B. Sector: Real Estate. Industry: REIT - Residential. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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