Cash generation exhibits significant seasonal lumpiness, with the ratio of operating cash flow to net income ranging from a negative 0.56 in 2024Q1 to a peak of 3.12 in 2025Q3.
| Metric | TTM | 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 | Dec'95 |
|---|
| Cash from Operations | 5.34B | 4.3B | 4.26B | 3.46B | 3.52B | 3.38B | 2.36B | 2.43B | 1.89B | 2.01B | 1.89B | 2.11B | 1.34B | 1.32B | 1.71B | 722M | 640M | 940M | -231M | 878M | 399M | 2.07B | 1.87B | 1.28B | 1.38B | 1.36B | 1B | 1.13B | 415.4M | 316.5M | 318.1M |
| Operating CF Growth % | 89.51% | 1.03% | 22.89% | -1.45% | 3.96% | 43.24% | -2.76% | 28.26% | -5.68% | 6.3% | -10.61% | 57.49% | 1.44% | -22.46% | 136.15% | 12.81% | -31.91% | 506.93% | -126.31% | 120.05% | -80.72% | 10.82% | 45.86% | -7.04% | 0.95% | 36.4% | -11.74% | 172.75% | 31.25% | -0.5% | -13.68% |
| Operating CF / Revenue % | 20.17% | 17.59% | 18.73% | 16.72% | 17.74% | 19.64% | 14.18% | 16.24% | 13.5% | 15.19% | 14.64% | 16.31% | 10.94% | 11.09% | 14.79% | 6.84% | 6.51% | 8.76% | -2.07% | 7.37% | 3.42% | 17.59% | 16.11% | 12.26% | 13.95% | 13.23% | 10.92% | 15.76% | 6.91% | 7.19% | 8.08% |
| Net Income | 4.13B | 4.06B | 3.8B | 3.09B | 3.17B | 2.05B | 1.77B | 1.67B | 1.51B | 1.79B | 1.64B | 1.5B | 1.39B | 1.2B | 1.01B | 871M | 242M | 80M | 538M | 818M | 404M | 176M | 1.54B | 1.36B | 974M | 1.18B | 726M | 796M | 399.4M | 459.3M | 402.9M |
| Depreciation & Amortization | 1.03B | 746M | 713M | 719M | 747M | 741M | 647M | 494M | 481M | 438M | 423M | 388M | 358M | 349M | 332M | 357M | 365M | 404M | 442M | 488M | 490M | 456M | 391M | 359M | 520M | 488M | 431M | 251M | 199.1M | 139.9M | 135.1M |
| Stock-Based Compensation | 442M | 368M | 363M | 367M | 348M | 290M | 252M | 193M | 149M | 109M | 88M | 93M | 18M | 26M | 21M | 18M | 11M | 34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -63M | 40M | 84M | -39M | 396M | 68M | 178M | 127M | 184M | 96M | 178M | 16M | 42M | 103M | 12M | 60M | 36M | -71M | 90M | 176M | -67M | 175M | 32M | 79M | -157.1M | -20.8M | 34.7M |
| Other Non-Cash Items | -1.18B | 203M | 288M | 304M | -45M | 402M | 301M | 412M | -29M | -38M | -40M | 81M | -15M | -37M | 99M | -57M | 379M | 470M | -1M | -152M | -138M | -200M | -100M | -67M | -5M | -10M | -31M | -226M | 324.9M | -271.9M | -83.5M |
| Working Capital Changes | -594M | -1.07B | -908M | -1.01B | -645M | -137M | -696M | -302M | -616M | -365M | -397M | -74M | -589M | -313M | 60M | -483M | -399M | -151M | -1.22B | -336M | -393M | 1.71B | -54M | -553M | -45M | -470M | -158M | 233M | -350.9M | 10M | -171.1M |
| Cash from Investing | -7.97B | -8.82B | -1.42B | -850M | -1.16B | -793M | -4.39B | -1.09B | -956M | -1.06B | -1.26B | -1.22B | -446M | -583M | -457M | 535M | -236M | -348M | 2.84B | -136M | 153M | -2.56B | -470M | -273M | -533M | -530M | -845M | -587M | -675.3M | -13.8M | -198.1M |
| Capital Expenditures | -205M | -316M | -416M | -470M | -406M | -348M | -421M | -314M | -302M | -253M | -325M | -368M | -401M | -320M | -280M | -271M | -305M | -386M | -378M | -307M | -345M | -376M | -436M | -423M | -433M | -512M | -715M | -599M | -675M | -157.3M | -136.9M |
| Acquisitions | 0 | -8.45B | -993M | -453M | -775M | -570M | -4.23B | -774M | -655M | -813M | -881M | -858M | -137M | -292M | -237M | 710M | 2M | -126M | -206M | 154M | -74M | -2.36B | -178M | -92M | -53M | -99M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -122M | -108M | -57M | -13M | 406M | 348M | 0 | 0 | -13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 305M | 0 | 3.37B | -107M | 202M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 4M | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 1000K | 0 | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.08B | 1M | 11M | 0 | -406M | -327M | 255M | -5M | 14M | 8M | -59M | 4M | 92M | 29M | 60M | 96M | -291M | 67M | 1M | -12M | 52M | 184M | 144M | 242M | -47M | 81M | -130M | 12M | -300K | 143.5M | -61.2M |
| Cash from Financing | 3.44B | 4.46B | -1.12B | -1.05B | -1.3B | -925M | 4.33B | -1.31B | -1.01B | -1.07B | -906M | -961M | -834M | -633M | -1.01B | -1.13B | -464M | -540M | -2.64B | -759M | 128M | 1.19B | -1.32B | -1B | -536M | -1B | -334M | -366M | 398.9M | -325M | -92.8M |
| Dividends Paid | -1.71B | -1.51B | -1.3B | -1.14B | -1.03B | -943M | -880M | -807M | -740M | -682M | -632M | -582M | -533M | -497M | -480M | -452M | -431M | -412M | -413M | -374M | -363M | -681M | -631M | -593M | -567M | -514M | -447M | -375M | -305.6M | -239.2M | -217M |
| Share Repurchases | -825M | -900M | -1.15B | -1.95B | -1.16B | 0 | -574M | -742M | -949M | -839M | -1.45B | -864M | -629M | -327M | -454M | -145M | 0 | 0 | -1.3B | 0 | 0 | -536M | -1.2B | -1.18B | -763M | -49M | -13M | -242M | 0 | -230.1M | -137.7M |
| Stock Issued | 255M | 264M | 199M | 126M | 161M | 132M | 0 | 93M | 166M | 188M | 224M | 263M | 352M | 248M | 162M | 41M | 34M | 68M | 186M | 181M | 269M | 456M | 573M | 490M | 387M | 364M | 489M | 185M | 210M | 143.1M | 82.6M |
| Debt Issuance (Net) | 0 | 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 | -842M | 51M | -426M | 1.62B | 1B | 664M | 675M | -54M | 8M | 69M | 145M | 195M | 315M | -46M | -792M | -74M | 0 | -39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | 4.8M |
| Net Change in Cash | 369M | -478M | 2.05B | 728M | 700M | 2.17B | 2.43B | -139M | 179M | -348M | -584M | -345M | 2M | 188M | 219M | 117M | 92M | -448M | 44M | 56M | 637M | 731M | 119M | 9M | 297M | -188M | -182M | 186M | 124.7M | -28.5M | 33.2M |
| Exchange Rate Effect | 0 | -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 |
| Cash at Beginning | 13.72B | 14.15B | 12.1B | 11.37B | 10.67B | 8.5B | 6.07B | 1.21B | 1.03B | 1.37B | 1.96B | 2.3B | 2.3B | 2.11B | 1.89B | 1.78B | 1.69B | 2.13B | 2.09B | 2.03B | 1.4B | 665M | 546M | 537M | 240M | 428M | 610M | 424M | 299.6M | 328.1M | 294.9M |
| Cash at End | 14.51B | 13.67B | 14.15B | 12.1B | 11.37B | 10.67B | 8.5B | 1.07B | 1.21B | 1.03B | 1.37B | 1.96B | 2.3B | 2.3B | 2.11B | 1.89B | 1.78B | 1.69B | 2.13B | 2.09B | 2.03B | 1.4B | 665M | 546M | 537M | 240M | 428M | 610M | 424.3M | 299.6M | 328.1M |
| Free Cash Flow | 5.11B | 3.99B | 3.84B | 3B | 3.11B | 3.03B | 1.94B | 2.11B | 1.59B | 1.75B | 1.56B | 1.74B | 940M | 1B | 1.43B | 451M | 335M | 451M | -609M | 571M | 54M | 1.69B | 1.43B | 857M | 944M | 852M | 285M | 534M | -259.6M | 159.2M | 181.2M |
| FCF Growth % | 35.66% | 3.75% | 28.28% | -3.7% | 2.5% | 56.39% | -8.23% | 32.87% | -9.29% | 12.22% | -10.38% | 85.53% | -6.19% | -29.68% | 215.96% | 34.63% | -25.72% | 174.06% | -206.66% | 957.41% | -96.81% | 18.31% | 66.98% | -9.22% | 10.8% | 198.95% | -46.63% | 305.7% | -263.07% | -12.14% | -17.41% |
| FCF Margin % | 19.33% | 16.3% | 16.9% | 14.45% | 15.69% | 17.61% | 11.65% | 14.14% | 11.34% | 13.28% | 12.12% | 13.47% | 7.67% | 8.4% | 12.36% | 4.27% | 3.41% | 4.2% | -5.45% | 4.79% | 0.46% | 14.4% | 12.35% | 8.21% | 9.57% | 8.27% | 3.11% | 7.43% | -4.32% | 3.61% | 4.6% |
| FCF per Share | 10.35 | 8.04 | 7.7 | 5.93 | 6.06 | 5.93 | 3.8 | 4.14 | 3.07 | 3.35 | 2.92 | 3.15 | 1.68 | 1.82 | 2.59 | 0.83 | 0.64 | 0.88 | -1.12 | 1.03 | 0.1 | 3.16 | 2.61 | 1.54 | 1.65 | 1.5 | 0.52 | 1.01 | -0.52 | 0.36 | 0.41 |
Seasonal cash flow volatility
According to quarterly financial data, MMC exhibits significant seasonal volatility in operating cash flow, with outflows of $622 million and $781 million in the first quarters of 2025 and 2024, respectively, contrasting sharply with the robust multi-billion dollar inflows observed during the third quarters of those same years.
The pronounced negative cash flow in the first quarter suggests a structural timing mismatch between premium collection cycles and the firm's operational expenditure requirements. Investors should monitor whether this pattern reflects the inherent seasonality of reinsurance renewals or if it indicates a tightening of liquidity during peak renewal periods.
As reported in recent filings, the ratio of operating cash flow to net income has fluctuated wildly, ranging from a negative 0.56 in 2024Q1 to a peak of 3.12 in 2025Q3, indicating that net income is a poor proxy for the firm's actual cash generation capabilities.
This wide variance suggests that non-cash accruals and the timing of fiduciary fund movements significantly distort the relationship between accounting profitability and liquidity. The reliance on high OCF/NI ratios in certain quarters may mask underlying cash volatility that is obscured by standard earnings reporting.
Based on the provided cash flow statements, MMC consistently returned capital to shareholders through dividends and buybacks even during quarters where operating cash flow was negative, with total capital returns reaching $901 million in 2025Q3 despite the inherent lumpiness of the firm's cash inflows.
The firm's ability to maintain dividend and buyback programs during cash-negative quarters implies a reliance on balance sheet liquidity or revolving credit facilities to bridge seasonal gaps. This strategy warrants further investigation into the firm's long-term capacity to sustain these payouts if seasonal cash flow deficits were to widen.
Analysis of the cash flow statement reveals that MMC's reported operating cash flow is heavily influenced by fiduciary activities, as evidenced by the massive swings in cash generation that do not correlate linearly with the firm's reported net income figures across the ten-quarter period.
The data suggests that the firm's cash flow statement may be obscuring the distinction between core operating cash and fiduciary premiums held on behalf of third parties. Investors should be cautious, as the reported cash flow figures may overstate the firm's true discretionary liquidity available for corporate purposes.
Quick answers to the most common questions about buying MMC stock.
Marsh & McLennan Companies, Inc. (MMC) generated $4.30B in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Marsh & McLennan Companies, Inc. (MMC) generated $3.99B in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Marsh & McLennan Companies, Inc. (MMC) spent $316.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Marsh & McLennan Companies, Inc. (MMC) returned $1.51B to shareholders via cash dividends and spent $900.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.