Operating cash flow quality remains high with an OCF/NI ratio consistently above 1.20, although free cash flow margins have fluctuated significantly, reaching a low of 2.6% in 2026Q1 due to heavy capital intensity.
| 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 |
|---|
| Cash from Operations | 670.93M | 618.98M | 621.75M | 576.29M | 934.74M | 428.11M | 265.68M | 219.88M | 164.69M | 181.07M | 261.97M | 271.68M | 192.18M | 189.03M | 166.56M | 59.49M | 78.79M | 93.17M | 135.49M | 158.27M | 151.58M | 162.24M | 129.06M | 85.22M |
| Operating CF Margin % | - | 59.38% | 61.31% | 59.19% | 94.1% | 62.09% | 57.56% | 49.16% | 35.9% | 40.08% | 52.57% | 47.84% | 34.81% | 32.14% | 28.28% | 12.71% | 21.91% | 29.16% | 45.33% | 61.14% | 61.72% | 67.21% | 61.97% | 58.32% |
| Operating CF Growth % | 46.55% | -0.45% | 7.89% | -38.35% | 118.34% | 61.14% | 20.83% | 33.51% | -9.05% | -30.88% | -3.57% | 41.36% | 1.67% | 13.49% | 179.97% | -24.49% | -15.43% | -31.24% | -14.39% | 4.41% | -6.57% | 25.71% | 51.44% | - |
| Net Income | 519.89M | 494.61M | 505.07M | 576.3M | 559.21M | 1.05B | 153.55M | 131.25M | -32.94M | 83.91M | -366.19M | 117.02M | -3.92M | 37.52M | -105.2M | 13.44M | -102.34M | 36.09M | 115.24M | 215.26M | 101.08M | 122.85M | 116.46M | 59.85M |
| Depreciation & Amortization | 209.6M | 207.44M | 143.81M | 108.06M | 77.57M | 89.3M | 101.53M | 96.5M | 107.76M | 115.23M | 129.04M | 131.78M | 137.06M | 137.41M | 143.94M | 106.18M | 77.05M | 60.91M | 51.02M | 41.09M | 31.11M | 27.11M | -33.79M | 0 |
| Stock-Based Compensation | 0 | 0 | 14.56M | 12.68M | 5.97M | 15.28M | 1.2M | 4.24M | 1.01M | 0 | 76K | 88K | 638K | 75K | 139K | 2.18M | 1.69M | 47K | 85K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -719.53M | -2.15M | 2.58M | 100.18M | 0 | 500.06M | 34.39M | 52.91M | 5.11M | 128.79M | -24.78M | 78.36M | 9.18M | -9.38M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -55.11M | -63.55M | 4.45M | -18.28M | 140.03M | 22.18M | 14.37M | 21.82M | 12.32M | 18.64M | 9.2M | 15.54M | 12.57M | 20.63M | 11.08M | -3.37M | 8.34M | -13.65M | -25.65M | -88.75M | -10.92M | -2.42M | 56.03M | 25.36M |
| Working Capital Changes | -3.47M | -19.52M | -46.14M | -102.47M | 151.96M | -31.96M | -2.82M | -36.51M | -23.64M | -36.7M | -10.22M | -27.14M | -7.08M | -11.73M | -12.18M | -34.15M | 15.71M | 588K | 4.17M | -9.34M | 30.3M | 14.69M | -9.64M | 0 |
| Change in Receivables | 354.09K | -3.78M | -6.54M | -21.73M | 1.48M | 786K | -411K | 2.08M | -2.72M | -2.54M | -13.21M | -2.75M | 134K | -4.3M | 435K | -64K | -380K | -2.61M | 3.2M | -2.15M | -3.03M | 4.68M | -2.77M | 0 |
| Change in Inventory | 6.46M | 0 | 630K | -8.41M | -3.52M | -2.07M | -1.13M | 390K | -43K | 2.55M | -355K | 625K | 2.83M | 3.23M | -1.54M | -6.27M | -2.27M | 417K | -2.31M | -1.99M | -1.18M | 156K | -1.09M | 0 |
| Change in Payables | -1.35M | -6.64M | 7.06M | -390K | 5.58M | 4.52M | -181K | 114K | -894K | 215K | -383K | -971K | -614K | -858K | -1.16M | 396K | 4.91M | -4.06M | 2.33M | 1.92M | 3.59M | 501K | -1.01M | 0 |
| Cash from Investing | -416.45M | -325.7M | -650.79M | -338.53M | 176.57M | -143.15M | -170.74M | -21.36M | -8.25M | 1.76M | -9.38M | -13.29M | 11.44M | 6.09M | -369.79M | -644.59M | -587.75M | -372.91M | -511.99M | -687.59M | -330.1M | -40.54M | -154.75M | -226.44M |
| Capital Expenditures | -371.93M | -296.69M | -659.34M | -268.04M | -199.13M | -355.72M | -170.66M | -21.36M | -8.25M | -4.48M | -4.56M | -1.11M | -39.16M | -46.84M | -375.42M | -644.59M | -589.51M | -375.22M | -595.02M | -963.36M | -356.9M | -40.54M | -170.13M | 0 |
| CapEx % of Revenue | 35.67% | 28.46% | 65.02% | 27.53% | 20.05% | 51.59% | 36.97% | 4.78% | 1.8% | 0.99% | 0.92% | 0.2% | 7.09% | 7.96% | 63.74% | 137.7% | 163.9% | 117.44% | 199.07% | 372.18% | 145.32% | 16.79% | 81.69% | - |
| Acquisitions | 52.66K | 1.68M | -1.64M | 0 | 129.07M | 16.22M | 0 | 0 | 0 | 0 | -10M | -13.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 139 | 0 | 10.2M | 3.91M | 375.71M | 16.22M | -75K | 0 | 0 | 6.24M | 5.18M | 1.05M | 50.6M | 52.93M | 5.63M | 0 | 1.76M | 2.31M | 83.03M | 275.77M | 26.8M | 3.73M | 15.38M | -226.44M |
| Cash from Financing | 159.48M | 290.62M | 210.61M | -233.62M | -973.4M | -220.87M | -168.45M | -136.62M | -148.87M | -189.65M | -251.12M | -243.86M | -214.04M | -182.59M | 207.5M | 406.63M | 616.74M | 281.07M | 433.72M | 549.74M | 183.6M | -180.71M | 45.13M | 187.33M |
| Debt Issued (Net) | 276.66M | 429.91M | 334.03M | -100.42M | -863.75M | -157.21M | -91.72M | -124.36M | -115.14M | -189.65M | -251.13M | -243.18M | -221.54M | -171.02M | 207.94M | 436.92M | 228.65M | 234.82M | 740.76M | 691.74M | 117.58M | 60.06M | 66.41M | 0 |
| Equity Issued (Net) | -51.16M | -75.74M | -53.33M | -70.61M | -28.55M | 0 | -31.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 199.95M | -384K | -201K | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -66.03M | -63.55M | -62.81M | -60.7M | -61.48M | -30.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -101.48M | -97.39M | -244.59M | -244.59M | -20.66M | 0 |
| Share Repurchases | -51.16M | -75.74M | -53.33M | -70.61M | -28.55M | 0 | -31.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -50K | -384K | -201K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1K | 0 | -7.28M | -1.89M | -19.62M | -32.77M | -45.6M | -12.27M | -33.73M | 0 | 0 | -686K | 7.5M | -11.57M | -442K | -30.29M | 188.14M | 46.63M | -205.36M | -44.61M | 66.02M | 3.83M | -623K | 187.33M |
| Net Change in Cash | 395.66M | 583.91M | 181.57M | 4.14M | 137.91M | 64.09M | -73.51M | 61.9M | 7.57M | -6.82M | 1.46M | 14.52M | -10.42M | 12.53M | 4.27M | -178.47M | 107.78M | 1.33M | 57.23M | 20.42M | 5.08M | -59.01M | 19.44M | 187.33M |
| Free Cash Flow | 298.99M | 322.29M | -37.59M | 308.26M | 735.61M | 72.39M | 95.02M | 198.52M | 156.44M | 176.59M | 257.41M | 270.56M | 153.02M | 142.19M | -208.87M | -585.1M | -510.72M | -282.05M | -459.53M | -805.09M | -205.32M | 121.7M | -41.07M | 85.22M |
| FCF Margin % | 28.67% | 30.92% | -3.71% | 31.66% | 74.05% | 10.5% | 20.58% | 44.39% | 34.1% | 39.09% | 51.65% | 47.64% | 27.72% | 24.18% | -35.46% | -124.99% | -141.99% | -88.28% | -153.74% | -311.03% | -83.6% | 50.42% | -19.72% | 58.32% |
| FCF Growth % | 1708.53% | 957.32% | -112.2% | -58.09% | 916.16% | -23.81% | -52.14% | 26.9% | -11.42% | -31.39% | -4.86% | 76.82% | 7.62% | 168.08% | 64.3% | -14.56% | -81.07% | 38.62% | 42.92% | -292.12% | -268.71% | 396.3% | -148.2% | - |
| FCF per Share | 16.40 | 17.44 | -1.94 | 15.49 | 35.88 | 3.52 | 3.99 | 12.24 | 14.73 | 22.51 | 32.82 | 34.50 | 19.53 | 18.15 | -26.68 | -75.12 | -94.78 | -72.39 | -117.92 | -206.59 | -61.48 | 38.45 | -12.98 | 26.93 |
| FCF Conversion (FCF/Net Income) | 0.58x | 1.25x | 1.23x | 1.00x | 1.67x | 0.41x | 1.73x | 3.86x | -5.00x | 2.16x | -0.72x | 2.32x | -49.03x | 5.04x | -1.58x | 4.43x | -0.77x | 2.58x | 1.18x | 0.74x | 1.50x | 1.32x | 1.11x | 1.42x |
| Interest Paid | 0 | 0 | 21.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital expenditure intensity risk
According to quarterly financial disclosures, Danaos Corporation consistently reports operating cash flow exceeding net income, with an OCF/NI ratio averaging above 1.20, suggesting that the company's earnings are supported by high-quality cash generation rather than non-cash accounting adjustments or aggressive revenue recognition practices.
The persistent gap between net income and operating cash flow indicates that non-cash charges, primarily depreciation, are significant, which is typical for a capital-intensive shipping fleet. Investors should note that this conversion efficiency provides a reliable buffer for dividend payments and debt service, even during periods of lower charter rate realizations.
As reported in recent financial statements, Danaos Corporation's free cash flow margins have experienced significant volatility, swinging from a high of 56.2% in 2025Q2 to a low of 2.6% in 2026Q1, primarily driven by the timing of heavy capital expenditures on fleet renewal and expansion.
This trajectory suggests that while the core business is highly cash-generative, the company's free cash flow is heavily dictated by management's discretionary investment cycle. The sharp contraction in recent quarters warrants further investigation into whether this reflects a permanent increase in maintenance requirements or temporary growth-oriented capital allocation.
Based on the provided cash flow data, Danaos Corporation's capital expenditure intensity has been substantial, with CapEx/Revenue ratios reaching as high as 93.4% in 2024Q3, reflecting a aggressive strategy to modernize the fleet and mitigate the risks associated with aging vessel assets.
The high level of capital intensity suggests that the company is prioritizing long-term fleet competitiveness over immediate cash preservation. Analysts should monitor whether these investments in newer, more efficient vessels will successfully lower future operating costs or if they will continue to suppress free cash flow in the near term.
As indicated by the company's cash flow statements, Danaos Corporation has utilized its robust operating cash flow to fund consistent dividend payments and opportunistic share repurchases, while simultaneously maintaining a massive cash reserve that provides significant flexibility for future strategic acquisitions or debt retirement.
The company's approach to capital deployment appears disciplined, balancing shareholder returns with the need to maintain a fortress balance sheet. This strategy may indicate that management is positioning the firm to act as a consolidator in the shipping industry should market conditions deteriorate and asset prices become more attractive.
Quick answers to the most common questions about buying DAC stock.
Danaos Corporation (DAC) generated $619.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Danaos Corporation (DAC) generated $322.3M 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.
Danaos Corporation (DAC) spent $296.7M 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, Danaos Corporation (DAC) returned $63.5M to shareholders via cash dividends and spent $75.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.