What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
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. Negative P/B indicates book equity has been reduced by buybacks — common in highly profitable capital-return businesses.
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.
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.
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. The company's platform includes artificial intelligence (AI) Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data applications, and share data and data products, as well as applies AI for solving business problems. It serves financial services, advertising, media and entertainment, retail and consumer goods, healthcare and life sciences, manufacturing, technology, telecom, travel and hospitality, and government and defense industries, as well as the public sector. the company has a collaboration with OpenAI, L.L.C. for the development of AI solutions for joint enterprise customers that deliver tangible return on investment. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Menlo Park, California.
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
Gross Profit %
67.2%▲
66.5%
68.0%
65.3%
Operating Margin %
-30.6%▲
-40.2%
-39.0%
-40.8%
Net Income %
-28.4%▲
-35.5%
-29.8%
-38.6%
Diluted EPS
-3.95▼
-3.86
-2.55
-2.50
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$9.1B
$9.0B
$8.2B
$7.7B
N/A
Total Debt
$2.7B↑
$2.7B
$288M
$252M
N/A
Working Capital
$1.3B▼
$2.6B
$2.3B
$3.0B
N/A
Years to Pay Debt
-2.06
-2.09
-0.34
-0.32
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$1.1B▲
$884M
$750M
$496M
N/A
Owner Earnings
-$1.0B
-$1.0B
-$618M
-$683M
N/A
CapEx % of Net Income
N/A
N/A
N/A
N/A
N/A
Income Statement
2026
2025
2024
2023
Tax Effect Of Unusual Items
-23,958
-6,598
0
0
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
-1,023,274
-1,068,412
-729,320
-752,458
Total Unusual Items
-59,895
-31,420
46,809
-46,435
Total Unusual Items Excluding Goodwill
-59,895
-31,420
46,809
-46,435
Net Income From Continuing Operation Net Minority Interest
-1,331,616
-1,285,640
-836,097
-796,705
Reconciled Depreciation
220,443
182,508
119,903
63,535
Reconciled Cost Of Revenue
1,537,805
1,214,673
898,558
717,540
EBITDA
-1,083,169
-1,099,832
-729,320
-752,458
EBIT
-1,303,612
-1,282,340
-849,223
-815,993
Net Interest Income
182,258
206,250
200,663
73,839
Interest Expense
8,298
2,759
0
0
Interest Income
190,556
209,009
200,663
73,839
Normalized Income
-1,295,679
-1,260,818
-836,097
-796,705
Net Income From Continuing And Discontinued Operation
-1,331,616
-1,285,640
-836,097
-796,705
Total Expenses
6,119,111
5,082,406
3,901,262
2,907,926
Total Operating Income As Reported
-1,435,165
-1,456,010
-1,094,773
-842,267
Diluted Average Shares
337,493
332,707
328,001
318,730
Basic Average Shares
337,493
332,707
328,001
318,730
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-1,331,616
-1,285,640
-836,097
-796,705
Net Income Common Stockholders
-1,331,616
-1,285,640
-836,097
-796,705
Net Income
-1,331,616
-1,285,640
-836,097
-796,705
Minority Interests
-2,581
3,572
1,893
821
Net Income Including Noncontrolling Interests
-1,329,035
-1,289,212
-837,990
-797,526
Net Income Continuous Operations
-1,329,035
-1,289,212
-837,990
-797,526
Tax Provision
17,125
4,113
-11,233
-18,467
Pretax Income
-1,311,910
-1,285,099
-849,223
-815,993
Other Income Expense
-59,003
-35,339
44,887
-47,565
Other Non Operating Income Expenses
892
-3,919
44,887
-47,565
Special Income Charges
-53,852
-11,578
-3,101
-38,036
Write Off
53,852
11,578
3,101
38,036
Gain On Sale Of Security
-6,043
-19,842
49,910
-8,399
Net Non Operating Interest Income Expense
182,258
206,250
200,663
73,839
Interest Expense Non Operating
8,298
2,759
0
0
Interest Income Non Operating
190,556
209,009
200,663
73,839
Operating Income
-1,435,165
-1,456,010
-1,094,773
-842,267
Operating Expense
4,581,306
3,867,733
3,002,704
2,190,386
Research And Development
1,969,472
1,783,379
1,287,949
788,058
Selling General And Administration
2,611,834
2,084,354
1,714,755
1,402,328
Selling And Marketing Expense
2,062,137
1,672,092
1,391,747
1,106,507
General And Administrative Expense
549,697
412,262
323,008
295,821
Other Gand A
549,697
412,262
323,008
295,821
Gross Profit
3,146,141
2,411,723
1,907,931
1,348,119
Cost Of Revenue
1,537,805
1,214,673
898,558
717,540
Total Revenue
4,683,946
3,626,396
2,806,489
2,065,659
Operating Revenue
4,683,946
3,626,396
2,806,489
2,065,659
Balance Sheet
2026
2025
2024
2023
2022
Treasury Shares Number
399
436
492
Ordinary Shares Number
343,918
333,865
333,961
323,305
Share Issued
344,317
334,301
334,453
323,305
Total Debt
2,741,114
2,685,270
287,981
251,658
Tangible Book Value
365,193
1,527,182
3,801,371
4,588,894
Invested Capital
4,203,929
5,271,458
5,180,308
5,456,436
Working Capital
1,320,921
2,568,189
2,308,034
2,991,173
Net Tangible Assets
365,193
1,527,182
3,801,371
4,588,894
Capital Lease Obligations
461,287
413,741
287,981
251,658
Common Stock Equity
1,924,102
2,999,929
5,180,308
5,456,436
Total Capitalization
4,203,929
5,271,458
5,180,308
5,456,436
Total Equity Gross Minority Interest
1,924,102
3,006,643
5,190,594
5,468,615
Minority Interest
0
6,714
10,286
12,179
Stockholders Equity
1,924,102
2,999,929
5,180,308
5,456,436
Gains Losses Not Affecting Retained Earnings
3,337
-2,236
-8,220
-38,272
Other Equity Adjustments
3,337
-2,236
-8,220
-38,272
Treasury Stock
54,488
59,505
67,140
0
Retained Earnings
-9,494,249
-7,293,575
-4,075,604
-2,716,074
Additional Paid In Capital
11,469,468
10,355,211
9,331,238
8,210,750
Capital Stock
34
34
34
32
Common Stock
34
34
34
32
Total Liabilities Net Minority Interest
7,208,393
6,027,295
3,032,789
2,253,707
Total Non Current Liabilities Net Minority Interest
2,786,702
2,726,112
301,559
260,190
Other Non Current Liabilities
80,746
61,264
33,120
24,370
Non Current Deferred Liabilities
14,440
15,501
14,402
11,463
Non Current Deferred Revenue
14,440
15,501
14,402
11,463
Long Term Debt And Capital Lease Obligation
2,691,516
2,649,347
254,037
224,357
Long Term Capital Lease Obligation
411,689
377,818
254,037
224,357
Long Term Debt
2,279,827
2,271,529
Current Liabilities
4,421,691
3,301,183
2,731,230
1,993,517
Other Current Liabilities
126,419
67,053
39,652
13,690
Current Deferred Liabilities
3,346,997
2,580,039
2,198,705
1,673,475
Current Deferred Revenue
3,346,997
2,580,039
2,198,705
1,673,475
Current Debt And Capital Lease Obligation
49,598
35,923
33,944
27,301
Current Capital Lease Obligation
49,598
35,923
33,944
27,301
Pensionand Other Post Retirement Benefit Plans Current
373,780
241,206
245,697
159,821
Payables And Accrued Expenses
524,897
376,962
213,232
119,230
Current Accrued Expenses
325,571
167,351
101,924
74,963
Payables
199,326
209,611
111,308
44,267
Total Tax Payable
53,767
39,844
59,587
20,595
Accounts Payable
145,559
169,767
51,721
23,672
Total Assets
9,132,495
9,033,938
8,223,383
7,722,322
Total Non Current Assets
3,389,883
3,164,566
3,184,119
2,737,632
Other Non Current Assets
428,320
333,704
273,810
283,851
Non Current Deferred Assets
241,759
183,967
187,093
145,286
Investments And Advances
755,013
656,476
916,307
1,073,023
Investmentin Financial Assets
755,013
656,476
916,307
1,073,023
Available For Sale Securities
755,013
656,476
916,307
1,073,023
Goodwill And Other Intangible Assets
1,558,909
1,472,747
1,378,937
867,542
Other Intangible Assets
364,542
416,188
403,031
210,172
Goodwill
1,194,367
1,056,559
975,906
657,370
Net PPE
405,882
517,672
427,972
367,930
Accumulated Depreciation
-126,397
-81,917
-53,039
-26,946
Gross PPE
532,279
599,589
481,011
394,876
Leases
133,374
97,324
67,804
59,872
Construction In Progress
22,247
67,778
113,627
68,888
Other Properties
274,897
359,439
252,128
231,266
Machinery Furniture Equipment
101,761
75,048
47,452
34,850
Current Assets
5,742,612
5,869,372
5,039,264
4,984,690
Other Current Assets
195,128
211,234
180,018
193,100
Current Deferred Assets
214,058
97,662
86,096
67,901
Prepaid Assets
149,523
Receivables
1,303,740
922,805
926,902
715,821
Accounts Receivable
1,303,740
922,805
926,902
715,821
Allowance For Doubtful Accounts Receivable
-4,800
-2,500
-2,200
-1,300
Gross Accounts Receivable
927,605
929,402
718,021
546,929
Cash Cash Equivalents And Short Term Investments
4,029,686
4,637,671
3,846,248
4,007,868
Other Short Term Investments
1,201,523
2,008,873
2,083,499
3,067,966
Cash And Cash Equivalents
2,828,163
2,628,798
1,762,749
939,902
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
1,117,213
884,052
750,159
495,799
Repurchase Of Capital Stock
-873,537
-1,932,333
-591,732
0
Issuance Of Debt
0
2,300,000
0
0
Capital Expenditure
-104,729
-75,712
-97,963
-49,840
Income Tax Paid Supplemental Data
15,675
12,452
6,550
1,482
End Cash Position
2,864,303
2,698,678
1,780,977
956,731
Beginning Cash Position
2,698,678
1,780,977
956,731
1,102,534
Effect Of Exchange Rate Changes
16,832
-6,186
-2,031
-933
Changes In Cash
148,793
923,887
826,277
-144,870
Financing Cash Flow
-1,385,390
-226,523
-854,103
-92,624
Cash Flow From Continuing Financing Activities
-1,385,390
-226,523
-854,103
-92,624
Net Other Financing Charges
-684,106
-716,129
-380,799
-173,448
Proceeds From Stock Option Exercised
172,253
121,939
118,428
80,824
Net Common Stock Issuance
-873,537
-1,932,333
-591,732
0
Common Stock Payments
-873,537
-1,932,333
-591,732
0
Net Issuance Payments Of Debt
0
2,300,000
0
0
Net Long Term Debt Issuance
0
2,300,000
0
0
Long Term Debt Issuance
0
2,300,000
0
0
Investing Cash Flow
312,241
190,646
832,258
-597,885
Cash Flow From Continuing Investing Activities
312,241
190,646
832,258
-597,885
Net Other Investing Changes
-749
Net Investment Purchase And Sale
595,820
297,412
1,205,927
-185,436
Sale Of Investment
2,636,240
2,866,655
3,682,133
3,715,885
Purchase Of Investment
-2,040,420
-2,569,243
-2,476,206
-3,901,321
Net Business Purchase And Sale
-178,850
-30,305
-275,706
-362,609
Purchase Of Business
-178,850
-30,305
-275,706
-362,609
Net Intangibles Purchase And Sale
-3,101
0
-28,744
-700
Purchase Of Intangibles
-3,101
0
-28,744
-700
Net PPE Purchase And Sale
-101,628
-46,279
-35,086
-25,128
Purchase Of PPE
-101,628
-46,279
-35,086
-25,128
Capital Expenditure Reported
0
-29,433
-34,133
-24,012
Operating Cash Flow
1,221,942
959,764
848,122
545,639
Cash Flow From Continuing Operating Activities
1,221,942
959,764
848,122
545,639
Change In Working Capital
383,760
443,589
390,716
289,526
Change In Other Working Capital
450,156
281,186
393,242
419,194
Change In Other Current Liabilities
-26,949
-47,711
-40,498
-42,342
Change In Payables And Accrued Expense
385,038
179,728
190,260
82,543
Change In Accrued Expense
393,337
70,876
171,048
74,519
Change In Payable
-8,299
108,852
19,212
8,024
Change In Account Payable
-8,299
108,852
19,212
8,024
Change In Prepaid Assets
-44,516
29,850
59,795
-2,904
Change In Receivables
-379,969
536
-212,083
-166,965
Changes In Account Receivables
-379,969
536
-212,083
-166,965
Other Non Cash Items
202,767
163,250
142,574
105,303
Stock Based Compensation
1,599,547
1,479,314
1,168,015
861,533
Unrealized Gain Loss On Investment Securities
46,435
-27,621
Asset Impairment Charge
108,715
0
0
Amortization Of Securities
-21,813
-43,434
-61,525
3,497
Deferred Tax
-2,337
-7,671
-26,762
-26,664
Deferred Income Tax
-2,337
-7,671
-26,762
-26,664
Depreciation Amortization Depletion
220,443
182,508
119,903
63,535
Depreciation And Amortization
220,443
182,508
119,903
63,535
Operating Gains Losses
59,895
31,420
-46,809
46,435
Gain Loss On Investment Securities
59,895
31,420
-46,809
46,435
Net Income From Continuing Operations
-1,329,035
-1,289,212
-837,990
-797,526
These metrics estimate what Snowflake Inc. is worth based on its fundamentals — independent of what the market currently prices it at.
Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles.
EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap ÷ Company Value
2.18
P/B Ratio
25.93
Warren's Owner Earnings
-$1.0B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/6 — Speculative Investor
✅Adequate Size
$4.7B
vs > $1.5B revenue
❌Strong Financial Condition
1.30x
vs Current Ratio > 2.0x
❌Earnings Stability
4 loss years (4 yrs data)
vs No negative EPS years
❌Dividend Record
No dividend
vs Uninterrupted dividends
❌Moderate P/E Ratio
59.3x
vs P/E ≤ 15.0x
❌Moderate Price-to-Book
25.93x P/B (P/E×P/B: 1538.0)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it may or may not apply to modern businesses.
✅ Adequate Size — $4.7Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.30xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 4 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
❌ Moderate P/E Ratio — 59.3xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
Net Current Asset Value
$-4.24
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$-46.13
Per share, no-growth floor. Compare to current price.
Cash Flow Analysis
Metric
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
N/A
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
-$874M
-$1.9B
-$592M
$0M
N/A
Free Cash Flow
$1.1B▲
$884M▲
$750M▲
$496M•
N/A•
Warren's Owner Earnings
-$1.0B
-$1.0B
-$618M
-$683M
N/A
Peers & Industry
No auto-detected peers for Software - Application. You can manually compare SNOW 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
3.27%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-69.2%
Weak — poor returns on equity
Return on Assets (ROA)
-14.6%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$874M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+2.1% YoY
Debt is roughly stable
Leadership Team
Sridhar Ramaswamy Ph.
CEO & Director
Age 58
Pay: $1,571,806
Benoit Dageville Ph.
Co-Founder, Chief Architect & President of Product Division & Director
Age 57
Christian Kleinerman
Executive Vice President of Product
Age 48
Pay: $814,997
Vivek Raghunathan
Senior Vice President of Engineering & Support
Age 45
Pay: $1,438,498
Thierry Cruanes
Co-Founder
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FMR, LLC
3.99%
13,807,332
Jennison Associates LLC
3.36%
11,603,302
JPMORGAN CHASE & CO
2.97%
10,252,770
Morgan Stanley
2.59%
8,941,881
State Street Corporation
2.15%
7,420,393
Geode Capital Management, LLC
1.39%
4,809,689
Risk Analysis
Beta (Market Risk)
1.08
Moderate volatility — moves slightly more than market
Short Interest
5.3% of float
Moderate short interest
Debt-to-Equity
1.42x
Moderate leverage
Current Ratio
1.30x
Adequate liquidity
52-Week Price Range
Low: $118.30Current: $144.30High: $280.67
Currently at 16% of 52-week range
Snowflake Inc. (SNOW) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 67.2%. Operating margin: -30.6%. Net margin: -28.4%. Market cap: $49.9B. Sector: Technology. Industry: Software - Application. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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