Qualcomm
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 4/4
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Owner earnings | $5.95bn | positive | ✓ |
| Return on equity | 26.1% | median 11.7% | ✓ |
| Debt to equity | 0.70x | median 0.79x | ✓ |
| Operating margin | 27.9% | median 15.0% | ✓ |
Passes 4 of 4. To be clear: Warren Buffett has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 4/4
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Return on capital employed | 34.3% | median 10.1% | ✓ |
| Cash conversion | 2.53x | median 1.78x | ✓ |
| Operating margin | 27.9% | median 15.0% | ✓ |
| Debt to equity | 0.70x | median 0.79x | ✓ |
Passes 4 of 4. To be clear: Terry Smith has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 3/3
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Return on capital employed | 34.3% | median 10.1% | ✓ |
| Return on equity | 26.1% | median 11.7% | ✓ |
| Operating margin | 27.9% | median 15.0% | ✓ |
Passes 3 of 3. To be clear: Charlie Munger has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 4/4
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Return on equity | 26.1% | median 11.7% | ✓ |
| Debt to equity | 0.70x | median 0.79x | ✓ |
| Cash conversion | 2.53x | median 1.78x | ✓ |
| Return on equity, sustained | 8 of 10 | 8 of 10 above median | ✓ |
Passes 4 of 4. To be clear: Chuck Akre has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 4/4
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Operating margin | 27.9% | median 15.0% | ✓ |
| Net margin | 12.5% | median 10.2% | ✓ |
| Return on capital employed | 34.3% | median 10.1% | ✓ |
| Operating margin, held or improving | 27.9% | 10-yr median 26.6% | ✓ |
Passes 4 of 4. To be clear: Philip Fisher has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Current ratio | 2.82x | median 1.25x | ✓ |
| Debt to equity | 0.70x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 2/3
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Current ratio | 2.82x | 2.00x published | ✓ |
| Long-term debt to working capital | 0.89x | 1.00x published | ✓ |
| Positive earnings, ten years running | 7 yrs | 10 published | ✗ |
Passes 2 of 3. To be clear: Benjamin Graham has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Return on capital employed | 34.3% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 2/2
| Measure | QCOM | Checked against | |
|---|---|---|---|
| Debt to equity | 0.70x | median 0.79x | ✓ |
| Net margin | 12.5% | median 10.2% | ✓ |
Passes 2 of 2. To be clear: Peter Lynch has never said anything about Qualcomm. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 69.5% | whyThe figure most screeners publish. |
| Operating cash flow | 27.2% | whyBefore capital spending. |
| Free cash flow | 29.7% | whyAfter maintaining the business. |
Spread between highest and lowest: 42.3 percentage points. Same filings, different denominators.
Coverage rating 57 / 100 — Tight. ? Peer standing 23/50Direction 25/30Stability 10/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-09-28 | 29.7% |
| 2024-09-29 | 33.0% |
| 2023-09-24 | 35.2% |
| 2022-09-25 | 47.0% |
| 2021-09-26 | 34.8% |
| 2020-09-27 | 65.4% |
Coverage has improved three years running, 47.0% to 29.7%.
45% of the 42 technology here pay out more.
The arithmetic
- GAAP earnings — dividends declared per share $3.48 ÷ diluted EPS $5.01
- Operating cash flow — dividends paid $3,805m ÷ operating cash flow $14,012m
- Free cash flow — dividends paid $3,805m ÷ (operating cash flow $14,012m − capex $1,192m)
Where the figures came from
- 10-K filed 2025-11-05 · accession 0000804328-25-000085
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated tight · when it files.
When this changes
Every figure above is recomputed whenever Qualcomm files. The monthly letter carries what filed, what moved, and one finding computed across every company here.