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-17.0%
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-12.4%
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.
Financial Health
F
Years to Pay Off Debt-14.4 yrs
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-$2.5B
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-$228M
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
F
Price-to-Book55.70x
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$84M
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-$116M
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 Snowflake Inc.
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.
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.
Metric Explanations
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 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.
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
-191,720
-293,957
Reconciled Depreciation
68,629
57,878
Reconciled Cost Of Revenue
510,075
390,873
EBITDA
-117,580
-227,968
EBIT
-186,209
-285,846
Net Interest Income
39,915
43,406
Interest Expense
2,081
2,075
Interest Income
41,996
45,481
Normalized Income
-212,573
-293,756
Net Income From Continuing And Discontinued Operation
-191,720
-293,957
Total Expenses
1,809,760
1,542,382
Total Operating Income As Reported
-262,967
-329,473
Diluted Average Shares
349,257
339,648
Basic Average Shares
349,257
339,648
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-191,720
-293,957
Net Income Common Stockholders
-191,720
-293,957
Net Income
-191,720
-293,957
Minority Interests
0
-2,354
Net Income Including Noncontrolling Interests
-191,720
-291,603
Net Income Continuous Operations
-191,720
-291,603
Tax Provision
3,430
3,682
Pretax Income
-188,290
-287,921
Other Income Expense
34,762
-1,854
Other Non Operating Income Expenses
7
-1,599
Special Income Charges
0
-500
Write Off
0
500
Gain On Sale Of Security
34,755
245
Net Non Operating Interest Income Expense
39,915
43,406
Interest Expense Non Operating
2,081
2,075
Interest Income Non Operating
41,996
45,481
Operating Income
-262,967
-329,473
Operating Expense
1,299,685
1,151,509
Research And Development
567,476
494,027
Selling General And Administration
732,209
657,482
Selling And Marketing Expense
611,615
550,364
General And Administrative Expense
120,594
107,118
Other Gand A
120,594
107,118
Gross Profit
1,036,718
822,036
Cost Of Revenue
510,075
390,873
Total Revenue
1,546,793
1,212,909
Operating Revenue
1,546,793
1,212,909
Balance Sheet
2026
2025
Treasury Shares Number
408
Ordinary Shares Number
346,600
342,065
Share Issued
346,600
342,473
Net Debt
576,798
336,092
Total Debt
2,763,815
2,685,615
Tangible Book Value
35,396
573,722
Invested Capital
4,433,649
4,410,682
Working Capital
-227,695
1,240,181
Net Tangible Assets
35,396
573,722
Capital Lease Obligations
479,830
407,866
Common Stock Equity
2,149,664
2,132,933
Total Capitalization
4,433,649
4,410,682
Total Equity Gross Minority Interest
2,149,664
2,132,933
Minority Interest
0
Stockholders Equity
2,149,664
2,132,933
Gains Losses Not Affecting Retained Earnings
-17,977
5,123
Other Equity Adjustments
-17,977
5,123
Treasury Stock
51,990
55,714
Retained Earnings
-10,281,543
-9,034,696
Additional Paid In Capital
12,501,139
11,218,186
Capital Stock
35
34
Common Stock
35
34
Total Liabilities Net Minority Interest
6,540,795
6,097,258
Total Non Current Liabilities Net Minority Interest
2,819,264
2,713,944
Other Non Current Liabilities
87,480
57,653
Non Current Deferred Liabilities
27,756
10,884
Non Current Deferred Revenue
27,756
10,884
Long Term Debt And Capital Lease Obligation
2,704,028
2,645,407
Long Term Capital Lease Obligation
420,043
367,658
Long Term Debt
2,283,985
2,277,749
Current Liabilities
3,721,531
3,383,314
Other Current Liabilities
119,510
175,708
Current Deferred Liabilities
2,568,489
2,423,622
Current Deferred Revenue
2,568,489
2,423,622
Current Debt And Capital Lease Obligation
59,787
40,208
Current Capital Lease Obligation
59,787
40,208
Pensionand Other Post Retirement Benefit Plans Current
350,243
324,021
Payables And Accrued Expenses
623,502
419,755
Current Accrued Expenses
388,643
179,721
Payables
234,859
240,034
Total Tax Payable
49,609
46,343
Accounts Payable
185,250
193,691
Total Assets
8,690,459
8,230,191
Total Non Current Assets
5,196,623
3,606,696
Other Non Current Assets
431,030
403,686
Non Current Deferred Assets
222,581
209,511
Investments And Advances
1,984,482
1,041,474
Investmentin Financial Assets
1,984,482
1,041,474
Available For Sale Securities
1,984,482
1,041,474
Goodwill And Other Intangible Assets
2,114,268
1,559,211
Other Intangible Assets
475,265
384,251
Goodwill
1,639,003
1,174,960
Net PPE
444,262
392,814
Accumulated Depreciation
-94,928
-109,354
Gross PPE
539,190
502,168
Leases
139,682
125,781
Construction In Progress
6,983
22,281
Other Properties
285,019
254,641
Machinery Furniture Equipment
107,506
99,465
Current Assets
3,493,836
4,623,495
Other Current Assets
208,593
164,319
Current Deferred Assets
222,084
167,926
Receivables
718,464
938,145
Accounts Receivable
718,464
938,145
Allowance For Doubtful Accounts Receivable
-3,700
Gross Accounts Receivable
941,845
Cash Cash Equivalents And Short Term Investments
2,344,695
3,353,105
Other Short Term Investments
637,508
1,411,448
Cash And Cash Equivalents
1,707,187
1,941,657
Cash Flow
2026
2025
Free Cash Flow
83,803
113,614
Repurchase Of Capital Stock
0
-232,896
Capital Expenditure
-7,554
-23,905
End Cash Position
1,751,687
1,984,631
Beginning Cash Position
2,128,678
1,960,838
Effect Of Exchange Rate Changes
-1,860
21
Changes In Cash
-375,131
23,772
Financing Cash Flow
-117,051
-361,986
Cash Flow From Continuing Financing Activities
-117,051
-361,986
Net Other Financing Charges
-184,896
-192,869
Proceeds From Stock Option Exercised
67,845
63,779
Net Common Stock Issuance
0
-232,896
Common Stock Payments
0
-232,896
Investing Cash Flow
-349,437
248,239
Cash Flow From Continuing Investing Activities
-349,437
248,239
Net Investment Purchase And Sale
-339,891
272,144
Sale Of Investment
579,778
613,316
Purchase Of Investment
-919,669
-341,172
Net Business Purchase And Sale
-1,992
0
Purchase Of Business
-1,992
0
Net Intangibles Purchase And Sale
0
Purchase Of Intangibles
0
Net PPE Purchase And Sale
-7,554
-23,905
Purchase Of PPE
-7,554
-23,905
Capital Expenditure Reported
0
Operating Cash Flow
91,357
137,519
Cash Flow From Continuing Operating Activities
91,357
137,519
Change In Working Capital
-255,510
-80,639
Change In Other Working Capital
-348,143
54,636
Change In Other Current Liabilities
-22,635
-15,990
Change In Payables And Accrued Expense
239,751
149,568
Change In Accrued Expense
108,847
120,620
Change In Payable
130,904
28,948
Change In Account Payable
130,904
28,948
Change In Prepaid Assets
22,104
19,823
Change In Receivables
-146,587
-288,676
Changes In Account Receivables
-146,587
-288,676
Other Non Cash Items
84,027
44,354
Stock Based Compensation
423,582
412,278
Asset Impairment Charge
112
96
Amortization Of Securities
-1,081
-5,100
Deferred Tax
-1,927
0
Deferred Income Tax
-1,927
0
Depreciation Amortization Depletion
68,629
57,878
Depreciation And Amortization
68,629
57,878
Operating Gains Losses
-34,755
255
Gain Loss On Investment Securities
-34,755
255
Net Income From Continuing Operations
-191,720
-291,603
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.1B▲ $1.5B+35.1%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 67.5%▲ 67.0%-0.5pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -23.0%▲ -17.0%+6.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -26.0%▲ -12.4%+13.6pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.5B/qtr (≈$6.2B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.94x 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.
$84M
vs Positive
Operating Cash Flow
$91M
Latest quarter · Buffett's cash reality check
ROIC
-4.2%
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
55.7x
Net Assets: $2.1B
Asset Context — Software - Application
Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.
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
2.90%
Low — management has little skin in the game
Return on Equity (ROE)
-8.9%
Weak — poor returns on equity
Return on Assets (ROA)
-2.2%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$874M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.3% YoY
Debt is declining — management is deleveraging
Leadership Team
Sridhar Ramaswamy Ph.
CEO & Director
Age 58
Pay: $1,523,031
Benoit Dageville Ph.
Co-Founder, Strategic Advisor & Director
Age 58
Brian Robins
Chief Financial Officer
Age 55
Pay: $722,647
Christian Kleinerman
Executive Vice President of Product Management
Age 49
Pay: $811,081
Vivek Raghunathan
Senior Vice President of Engineering
Age 46
Pay: $758,093
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.90%
31,405,420
Vanguard Capital Management LLC
4.27%
15,066,218
Vanguard Portfolio Management LLC
3.65%
12,878,536
JPMORGAN CHASE & CO
2.61%
9,218,816
State Street Corporation
2.26%
7,957,874
FMR, LLC
2.17%
7,653,175
Geode Capital Management, LLC
1.82%
6,416,309
Jennison Associates LLC
1.80%
6,340,455
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.33
Moderate volatility — moves slightly more than market
Short Interest
5.2% of float
Moderate short interest
Debt-to-Equity
1.29x
Moderate leverage
Current Ratio
0.94x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $118.30Current: $339.39High: $384.56
Currently at 83% 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: 67.0%. Operating margin: -17.0%. Net margin: -12.4%. Market cap: $119.7B. 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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