Cash conversion efficiency remains inconsistent, as demonstrated by an OCF/NI ratio that reached an extreme high of 20.31 in 2025Q1 before compressing to 0.95 by 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 2.93B | 2.56B | 2.71B | 3.19B | 3.88B | 5.05B | 5.96B | 5.46B | 6.01B | 6.13B | 5.99B | 6.78B | 6.55B | 10.55B | 14.95B | 10.84B | 6.99B | 6.16B | 4.96B | 4.66B | 4.4B | 4.43B | 4.49B | 3.39B | 3.04B | 2.85B | 3.25B | 2.81B | 2.5B | 2.6B | 2.69B |
| Operating CF Growth % | 113.99% | -5.62% | -15.14% | -17.76% | -23.2% | -15.22% | 9.22% | -9.29% | -1.86% | 2.36% | -11.64% | 3.45% | -37.9% | -29.46% | 37.91% | 55.13% | 13.44% | 24.09% | 6.64% | 5.89% | -0.81% | -1.18% | 32.37% | 11.55% | 6.63% | -12.2% | 15.6% | 12.28% | -3.77% | -3.56% | -8.49% |
| Operating CF / Revenue % | 16.1% | 14.65% | 14.15% | 16.93% | 20.25% | 23.44% | 26.76% | 24.53% | 27.7% | 28.37% | 26.62% | 32.56% | 28.97% | 44.26% | 59.16% | 49.08% | 33.83% | 33.75% | 29.99% | 30.25% | 30.08% | 30.86% | 33.78% | 29.61% | 29.62% | 29.68% | 33.44% | 32.49% | 35.19% | 35.83% | 37.94% |
| Net Income | 4.64B | 3.65B | 5.44B | 4.66B | 4.42B | 4.23B | 4.78B | 3.3B | 2.92B | 4.6B | 2.66B | 2.53B | 2.95B | 3.16B | 2.87B | 1.94B | 2.33B | 1.5B | 1.25B | 1.63B | 1.48B | 1.48B | 1.27B | 768M | 821M | 687M | 687M | 571M | 487M | 585M | 394M |
| Depreciation & Amortization | -653M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 43M | 45M | 48M |
| Stock-Based Compensation | -14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56M | -13M | -23M | -213M | -12M | 16M |
| Other Non-Cash Items | -638M | 68M | -2.09B | 183M | -761M | -122M | 518M | 323M | 742M | -35M | 48M | 608M | 94M | 2M | 211M | 1.72B | 325M | 1.46B | 1.22B | 37M | -55M | -208M | 134M | 391M | 148M | 49M | -98M | -2.27B | -1.71B | -2.43B | -2.4B |
| Working Capital Changes | -397M | -1.16B | -644M | -1.65B | 222M | 942M | 662M | 1.83B | 2.35B | 1.56B | 3.28B | 3.63B | 3.5B | 7.39B | 11.88B | 7.19B | 4.34B | 3.21B | 2.49B | 2.98B | 2.97B | 3.16B | 3.09B | 2.23B | 2.07B | 2.06B | 2.67B | 4.52B | 3.89B | 4.41B | 4.64B |
| Cash from Investing | 2.16B | 1.56B | 2.78B | 817M | -1.54B | -2.38B | -4.62B | -3.17B | -3.58B | -5.43B | -3.85B | -4.9B | -4.24B | -11.09B | -16.95B | -10.83B | -7.43B | -5.48B | -4.28B | -3.65B | -4.06B | -6.69B | -1.42B | -3.5B | -2.27B | -2.47B | -3.06B | -2.74B | -2.25B | -2.43B | -2.5B |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -49M | -46M | -23M | -16M | -21M | -21M | -25M | -45M | -26M | -14M | -40M | -9M | -10M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -40M | 0 | 0 | 0 | 0 | 0 | -83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 350.63M | 0 |
| Purchase of Investments | -14.95B | -14.01B | -7.11B | -3.58B | -4.26B | -7.37B | -6.13B | -7.94B | -10.18B | -11.14B | -10.81B | -9.15B | -14.91B | -31.67B | -36.09B | -27.39B | -12.28B | -11.69B | -8.02B | -6.77B | -7.37B | -8.89B | -6.21B | -6.24B | -5.87B | -5.54B | -4.45B | -4.31B | -3.94B | -4.2B | -3.97B |
| Sale/Maturity of Investments | -3.37B | 13.71B | 7.99B | 4.3B | 4.99B | 4.62B | 3.98B | 6.56B | 9.99B | 7.79B | 8.47B | 5.77B | 13.86B | 19.57B | 13.18B | 15.97B | 5.19B | 7.58B | 3.12B | 3.19B | 3.14B | 4.46B | 2.3B | 3.5B | 3.16B | 2.72B | 1.3B | 5.89B | 3.98B | 2.21B | 2.29B |
| Other Investing | 20.48B | 1.86B | 1.9B | 95M | -2.27B | 369M | -2.47B | -1.78B | -3.39B | -2.08B | -1.51B | -1.48B | -3.19B | 1B | 5.96B | 585M | -340M | -1.29B | 657M | -32M | 190M | -2.24B | 2.51B | -733M | 467M | 397M | 118M | -4.3B | -2.25B | -793.63M | -809M |
| Cash from Financing | -4.57B | -4.07B | -3.49B | -3.72B | -3.55B | -2.74B | -1.11B | -1.71B | -1.62B | -2.06B | -1.62B | -2.19B | -147M | 1.14B | 1.95B | 64M | 161M | 699M | -1.38B | -655M | -434M | -196M | -313M | -298M | -320M | -42M | -130M | 113M | -151M | -121M | -157M |
| Dividends Paid | -1.2B | -1.2B | -1.09B | -966M | -979M | -855M | -769M | -771M | -793M | -661M | -658M | -656M | -654M | -635M | -603M | -552M | -535M | -524M | -434M | -373M | -258M | -209M | -182M | -146M | -112M | -95M | -82M | -72M | -63M | -61M | -54M |
| Share Repurchases | -3.63B | -3.53B | -2.8B | -2.8B | -2.4B | -2.3B | -1.54B | -1.63B | -1.3B | -1.35B | -1.42B | -1.31B | -1.21B | -813M | -118M | -308M | -121M | -10M | -1.49B | -606M | -470M | -438M | -392M | -343M | -346M | -350M | -239M | -224M | -125M | -314M | -204M |
| Stock Issued | 8M | 8M | 14M | 17M | 17M | 26M | 34M | 49M | 58M | 33M | 46M | 36M | 33M | 88M | 32M | 26M | 45M | 17M | 32M | 47M | 42M | 50M | 39M | 33M | 35M | 38M | 31M | 39M | 30M | 40M | 35M |
| Debt Issuance (Net) | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K |
| Other Financing | -307M | -304M | -242M | -177M | -49M | -62M | -38M | 21M | -50M | 35M | 39M | 22M | 1.27B | 1.8B | 1.47B | 740M | 475M | 371M | 514M | 282M | 247M | 310M | 234M | 178M | 83M | 148M | 53M | 18M | 8M | 8M | 6M |
| Net Change in Cash | 423M | 16M | 1.92B | 363M | -1.11B | -90M | 245M | 559M | 846M | -1.37B | 509M | -308M | 2.12B | 502M | -208M | 128M | -202M | 1.38B | -622M | 360M | -94M | -2.52B | 2.76B | -327M | 527M | 243M | -7M | 242M | 138M | 27M | 19M |
| Exchange Rate Effect | -105M | -31M | -79M | 79M | 104M | -24M | 21M | -12M | 30M | 0 | -4M | 0 | -47M | -90M | -153M | 51M | 80M | -2M | 79M | 13M | 0 | -61M | 6M | 82M | 83M | -91M | -63M | 60M | 34M | -16M | -13M |
| Cash at Beginning | 6.25B | 6.23B | 4.31B | 3.94B | 5.05B | 5.14B | 4.9B | 4.34B | 3.49B | 4.86B | 4.35B | 4.66B | 2.54B | 2.04B | 2.25B | 2.12B | 2.32B | 941M | 1.56B | 1.2B | 1.3B | 3.81B | 1.05B | 1.38B | 852M | 609M | 616M | 374M | 236M | 209M | 190M |
| Cash at End | 5.65B | 6.25B | 6.23B | 4.31B | 3.94B | 5.05B | 5.14B | 4.9B | 4.34B | 3.49B | 4.86B | 4.35B | 4.66B | 2.54B | 2.04B | 2.25B | 2.12B | 2.32B | 941M | 1.56B | 1.2B | 1.3B | 3.81B | 1.05B | 1.38B | 852M | 609M | 616M | 374M | 236M | 209M |
| Free Cash Flow | 2.93B | 2.56B | 2.71B | 3.19B | 3.88B | 5.05B | 5.96B | 5.46B | 6.01B | 6.13B | 5.99B | 6.78B | 6.55B | 10.55B | 14.95B | 10.84B | 6.99B | 6.16B | 4.96B | 4.66B | 4.37B | 4.42B | 4.46B | 3.37B | 3.01B | 2.8B | 3.22B | 2.79B | 2.46B | 2.59B | 2.68B |
| FCF Growth % | 19.9% | -5.62% | -15.14% | -17.76% | -23.2% | -15.22% | 9.22% | -9.29% | -1.86% | 2.36% | -11.64% | 3.45% | -37.9% | -29.46% | 37.91% | 55.13% | 13.44% | 24.09% | 6.64% | 6.45% | -0.97% | -1.07% | 32.57% | 11.78% | 7.45% | -12.89% | 15.25% | 13.54% | -4.98% | -3.54% | -8.29% |
| FCF Margin % | 16.1% | 14.65% | 14.15% | 16.93% | 20.25% | 23.44% | 26.76% | 24.53% | 27.7% | 28.37% | 26.62% | 32.56% | 28.97% | 44.26% | 59.16% | 49.08% | 33.83% | 33.75% | 29.99% | 30.25% | 29.93% | 30.75% | 33.62% | 29.42% | 29.38% | 29.21% | 33.18% | 32.33% | 34.63% | 35.71% | 37.8% |
| FCF per Share | 5.7 | 4.8 | 4.79 | 5.33 | 6.08 | 7.46 | 8.32 | 7.31 | 7.76 | 7.68 | 7.23 | 7.82 | 7.21 | 11.28 | 15.93 | 11.55 | 7.39 | 6.57 | 5.18 | 4.71 | 4.36 | 4.35 | 4.32 | 3.23 | 2.85 | 2.61 | 2.95 | 2.54 | 2.23 | 2.3 | 2.32 |
Yen volatility and claims
According to the provided quarterly data, Aflac's operating cash flow has fluctuated significantly, ranging from a low of $255 million in 2024Q2 to a peak of $1.3 billion in 2025Q3, reflecting the inherent instability in net float generation across its primary Japanese and U.S. insurance segments.
The wide variance in operating cash flow suggests that the company's ability to generate consistent float is highly sensitive to the timing of claims payments and premium receipts. Investors should monitor whether this volatility is a structural byproduct of the Japanese product mix or if it indicates a weakening in the predictability of the underwriting cycle.
As reported in financial statements, Aflac's investment activity shows aggressive portfolio turnover, highlighted by a massive $18.9 billion purchase in 2025Q4, which suggests that management is actively rebalancing its asset allocation to navigate shifting interest rate environments and currency-denominated yield opportunities across its global insurance operations.
The frequent and large-scale purchases and sales of investments indicate that the company relies heavily on active portfolio management to supplement its core underwriting income. This strategy appears to introduce significant non-operating cash flow volatility that may obscure the underlying performance of the insurance business itself.
Based on the reported figures, Aflac has maintained a consistent capital return program, with quarterly buybacks frequently reaching $1 billion, even during periods where operating cash flow was significantly lower, such as the $315 million reported in 2025Q4, warranting further investigation into the sustainability of these payouts.
The disconnect between operating cash flow and the scale of share repurchases suggests that the company may be utilizing its investment portfolio or existing cash reserves to fund shareholder returns. This approach appears to prioritize capital return over the retention of liquidity, which could leave the company vulnerable if claims activity spikes unexpectedly.
Data from the last ten quarters reveals a notable divergence between net income and operating cash flow, with the OCF/NI ratio swinging from a high of 20.31 in 2025Q1 to a low of 0.15 in 2024Q2, indicating that accounting accruals significantly distort the company's actual cash reality.
This extreme variance suggests that net income is a poor proxy for the company's immediate liquidity position, likely due to the impact of non-cash items such as DAC amortization and reserve adjustments. Analysts should treat reported earnings with caution, as they appear to mask the underlying cash flow volatility inherent in the insurance model.
Quick answers to the most common questions about buying AFL stock.
Aflac Incorporated (AFL) generated $2.56B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Aflac Incorporated (AFL) generated $2.56B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Aflac Incorporated (AFL) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Aflac Incorporated (AFL) returned $1.20B to shareholders via cash dividends and spent $3.53B on share repurchases. This shows the company's commitment to returning capital to its equity investors.