Cash conversion efficiency is highly erratic, as demonstrated by the OCF/NI ratio fluctuating between a low of 0.15 in 2025Q1 and a high of 2.95 in 2024Q3.
| 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 | 3.77B | 3.48B | 3.04B | 3.44B | 3.22B | 2.18B | 2.78B | 1.83B | 1.69B | 734M | 2.33B | 2.01B | 1.64B | 1.63B | 1.42B | 1.02B | 787M | 375M | 959M | 1.29B | 968M | 886M | 1.18B | 1.31B | 1.24B | 559M | 739M | 462M | 864M | 784.1M | 354.6M |
| Operating CF Growth % | 292.05% | 14.7% | -11.64% | 6.71% | 47.53% | -21.6% | 51.66% | 8.84% | 129.7% | -68.44% | 15.78% | 22.35% | 0.55% | 15.08% | 39.39% | 29.35% | 109.87% | -60.9% | -25.6% | 33.16% | 9.26% | -25.17% | -9.76% | 5.64% | 122.18% | -24.36% | 59.96% | -46.53% | 10.19% | 121.12% | -41.83% |
| Operating CF / Revenue % | 21.57% | 20.26% | 19.33% | 25.68% | 25.8% | 17.9% | 25.15% | 16.66% | 15.65% | 7.34% | 24.72% | 21.19% | 13.63% | 13.82% | 12.32% | 9.02% | 9.25% | 4.94% | 12.74% | 17.52% | 14.07% | 13.32% | 11.64% | 13.37% | 16.69% | 7.53% | 10.1% | 6.53% | 13.31% | 13.63% | 9.12% |
| Net Income | 3.94B | 3.69B | 2.72B | 2.56B | 2.65B | 1.31B | 2.02B | 1.57B | 1.17B | 1.26B | 1.43B | 1.42B | 1.43B | 1.15B | 993M | 1.01B | 732M | 792M | 1.46B | 864M | 674M | 497M | 546M | 651M | 466M | 203M | 481M | 352M | 541M | 298.8M | 270.8M |
| Depreciation & Amortization | 919M | 966M | 686M | 256M | 264M | 326M | 413M | 564M | 769M | 891M | 509M | 543M | 594M | 635M | 655M | 582M | 305M | 242M | 222M | 205M | 201M | 346M | 309M | 314M | 263M | 339M | 333M | 355M | 268M | 241.2M | 144M |
| Stock-Based Compensation | 307M | 0 | 474M | 438M | 397M | 449M | 312M | 317M | 338M | 319M | 331M | 340M | 328M | 300M | 212M | 235M | 221M | 209M | 248M | 204M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -168M | 0 | -311M | -373M | -252M | 11M | 9M | -36M | -225M | -8M | -24M | -256M | -135M | -14M | -95M | 146M | 76M | 138M | -131M | 168M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -2.19B | -988M | -471M | 88M | 116M | -142M | -26M | -12M | -68M | -747M | -39M | -48M | -44M | -65M | 27M | -6M | 43M | -91M | -716M | -104M | -421M | -106M | 451M | 272M | 479M | 80M | -220M | -188M | 235M | 716.9M | 394.9M |
| Working Capital Changes | 908M | -192M | -63M | 462M | 48M | 230M | 57M | -571M | -302M | -984M | 119M | 8M | -532M | -371M | -373M | -949M | -590M | -915M | -126M | -48M | 514M | 149M | -122M | 75M | 34M | -63M | 145M | -57M | -180M | -472.8M | -455.1M |
| Cash from Investing | 1.58B | 286M | -2.83B | -188M | -449M | 49M | -679M | -229M | 31M | 2.79B | -954M | -138M | -545M | -339M | 177M | -186M | -2.56B | -139M | 1.4B | -463M | -190M | -769M | -923M | -607M | -597M | -616M | -137M | -493M | -1.35B | -1.38B | 237.5M |
| Capital Expenditures | -274M | -263M | -218M | -252M | -196M | -137M | -141M | -225M | -240M | -183M | -222M | -290M | -256M | -229M | -269M | -241M | -180M | -140M | -103M | -170M | -152M | -126M | -80M | -185M | -278M | -281M | -179M | -271M | -300M | -1.79B | -74.8M |
| Acquisitions | 2.21B | 1.96B | -2.81B | -30M | -81M | 204M | -338M | 13M | -68M | 3.22B | -772M | 189M | -431M | -14M | -160M | -97M | -2.08B | -263M | 1.72B | -198M | 544M | 283M | 53M | -8M | -111M | -107M | -85M | -395M | -374M | -1.65B | 1.03B |
| Purchase of Investments | -27M | -1.55B | -172M | -67M | -282M | -91M | -264M | -113M | -80M | -296M | -64M | -266M | -20M | -189M | -12M | -38M | -390M | -158M | -471M | -1.13B | -2.49B | -3.47B | -2.84B | -2.07B | -2.63B | -2.32B | -1.04B | -93M | -5.18B | -4.63B | -1.03B |
| Sale/Maturity of Investments | -5M | 145M | 363M | 161M | 110M | 73M | 64M | 96M | 419M | 68M | 104M | 229M | 162M | 93M | 618M | 190M | 90M | 422M | 254M | 1.03B | 1.91B | 2.55B | 1.94B | 1.66B | 2.42B | 2.09B | 1.16B | 1.97B | 4.5B | 4.32B | 836.7M |
| Other Investing | -328M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.7B | 0 | 2.38B | -523.6M |
| Cash from Financing | -4.3B | -4.21B | 796M | -2.87B | -1.79B | -1.92B | -1.77B | -247M | -1.7B | -3.27B | -1.29B | -1.69B | -1.3B | -1.14B | -1.59B | -896M | 1.82B | -649M | -2.23B | -579M | -964M | -204M | -266M | -670M | -596M | -620M | -313M | 152M | 132M | 1.3B | -301M |
| Dividends Paid | -644M | -629M | -562M | -489M | -463M | -447M | -412M | -410M | -382M | -364M | -345M | -323M | -273M | -212M | -204M | -200M | -195M | -165M | -171M | -176M | -189M | -193M | -192M | -190M | -233M | -241M | -226M | -210M | -194M | -182.1M | -172.9M |
| Share Repurchases | -750M | -1B | -1B | -2.7B | -3.2B | -3.54B | -1.76B | -1.96B | -1.47B | -2.4B | -1.26B | -1.55B | -2.25B | -1.1B | -1.13B | -828M | -250M | -478M | -1.74B | -523M | -966M | -75M | 0 | -6M | -97M | 0 | -59M | -66M | -18M | -136M | -18M |
| Stock Issued | 40M | 70M | 79M | 72M | 58M | 55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 201M | 194M | 51M | 62M | 28M | 50M | 76M | 23M | 0 | 607M | 49M | 0 | 0 | 0 | 21M | 14.2M |
| Debt Issuance (Net) | -3M | -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 | -475M | -772M | -128M | -115M | 416M | 258M | 132M | 1.01B | -184M | -157M | -206M | -69M | -101M | -49M | 87M | 147M | 159M | 0 | -1.74B | 0 | 0 | 0 | -51M | -89M | -682M | -285M | -219M | -130M | 298M | 465.2M | 49.2M |
| Net Change in Cash | 2.48B | 240M | 611M | 646M | 431M | 72M | 629M | 1.42B | -100M | 325M | 47M | 10M | -103M | 186M | 19M | -74M | 129M | -365M | -2M | 303M | -195M | -94M | 30M | 56M | 45M | -679M | 281M | 114M | -362M | 675M | 295M |
| Exchange Rate Effect | 1.43B | 678M | -387M | 264M | -549M | -235M | 297M | 63M | -118M | 69M | -39M | -172M | -67M | -92M | 9M | -10M | 62M | 16M | -130M | 56M | -9M | -7M | 35M | 21M | 18M | -2M | -8M | -7M | -3M | -33M | 4M |
| Cash at Beginning | 8.57B | 8.33B | 7.72B | 7.08B | 6.64B | 6.57B | 5.94B | 4.52B | 756M | 431M | 384M | 374M | 477M | 291M | 272M | 346M | 217M | 582M | 584M | 281M | 476M | 570M | 540M | 484M | 439M | 1.12B | 837M | 723M | 1.08B | 410M | 115M |
| Cash at End | 9.46B | 8.57B | 8.33B | 7.72B | 7.08B | 6.64B | 6.57B | 5.94B | 656M | 756M | 431M | 384M | 374M | 477M | 291M | 272M | 346M | 217M | 582M | 584M | 281M | 476M | 570M | 540M | 484M | 439M | 1.12B | 837M | 723M | 1.08B | 410M |
| Free Cash Flow | 3.5B | 3.22B | 2.82B | 3.18B | 3.02B | 2.04B | 2.64B | 1.61B | 1.45B | 551M | 2.1B | 1.72B | 1.39B | 1.4B | 1.15B | 777M | 607M | 235M | 856M | 1.12B | 816M | 760M | 1.1B | 1.13B | 964M | 278M | 560M | 191M | 564M | -1.01B | 279.8M |
| FCF Growth % | 32.46% | 14.24% | -11.5% | 5.29% | 47.82% | -22.6% | 64.1% | 11.34% | 162.43% | -73.81% | 22.4% | 24.03% | -1.28% | 22.09% | 48.01% | 28.01% | 158.3% | -72.55% | -23.5% | 37.13% | 7.37% | -31.16% | -2.04% | 16.91% | 246.76% | -50.36% | 193.19% | -66.13% | 155.8% | -461.22% | -45.32% |
| FCF Margin % | 20% | 18.73% | 17.94% | 23.8% | 24.22% | 16.77% | 23.87% | 14.62% | 13.43% | 5.51% | 22.36% | 18.13% | 11.51% | 11.88% | 9.99% | 6.88% | 7.13% | 3.09% | 11.37% | 15.21% | 11.86% | 11.43% | 10.85% | 11.49% | 12.95% | 3.74% | 7.65% | 2.7% | 8.69% | -17.57% | 7.2% |
| FCF per Share | 16.23 | 14.86 | 13.26 | 15.53 | 14.18 | 9.04 | 11.33 | 6.69 | 5.85 | 2.11 | 7.78 | 6.06 | 4.63 | 4.45 | 3.46 | 2.28 | 2.04 | 0.81 | 2.84 | 3.46 | 2.39 | 2.23 | 3.28 | 3.55 | 3.35 | 1.02 | 2.11 | 0.73 | 2.17 | -3.95 | 1.1 |
Volatile Cash Conversion Cycles
As reported in quarterly financial filings, Aon's underwriting cash generation exhibits significant volatility, with net cash from operations fluctuating between a low of $140 million in 2025Q1 and a high of $1.4 billion in 2025Q4, indicating inconsistent timing between premium inflows and underlying claim payment obligations.
The wide variance in operating cash flow relative to net income suggests that the firm's core brokerage activities are subject to significant timing mismatches. Investors should monitor whether these fluctuations are driven by seasonal renewal patterns or underlying shifts in the efficiency of premium collection processes.
Based on the provided data, the OCF/NI ratio has shown extreme instability, ranging from a low of 0.15 in 2025Q1 to a high of 2.95 in 2024Q3, which suggests that reported net income may be heavily influenced by non-cash accruals or significant accounting adjustments.
This disconnect between accounting profit and actual cash generation warrants further investigation into the quality of earnings. The reliance on non-cash items to bolster net income may obscure the true operational health of the firm's brokerage and consulting segments.
According to historical cash flow statements, Aon has maintained consistent dividend payments and share buybacks despite significant volatility in operating cash flow, with buybacks reaching $750 million in 2023Q4, potentially signaling a reliance on balance sheet liquidity rather than current period cash generation to fund shareholder returns.
The firm's commitment to aggressive capital returns appears to persist even during periods of cash flow contraction. This strategy may be unsustainable if the volatility in operating cash flow continues, potentially forcing the firm to increase leverage or liquidate investment assets to maintain current payout levels.
As evidenced by the quarterly investment activity, Aon has engaged in substantial portfolio turnover, including a $5.1 billion purchase of investments in 2024Q1, which suggests that the firm actively manages its liquidity position to navigate the cyclical nature of its insurance brokerage and reinsurance operations.
The significant swings in investment purchases and sales imply that the firm uses its portfolio as a buffer against operational cash flow volatility. Analysts should monitor whether these investment activities are intended to generate yield or simply to manage short-term working capital requirements.
Quick answers to the most common questions about buying AON stock.
Aon plc (AON) generated $3.48B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Aon plc (AON) generated $3.22B 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.
Aon plc (AON) spent $263.0M 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, Aon plc (AON) returned $629.0M to shareholders via cash dividends and spent $1.00B on share repurchases. This shows the company's commitment to returning capital to its equity investors.