BlackRock, Inc. (BLK): FY2024 Income, Cash Flow & Balance Sheet Analysis

Income statement trends#

BlackRock, Inc. ([BLK]) closed FY2024 with $20.41B in revenue and $6.37B in net income, representing a clear operational rebound from recent years. Revenue rose +14.28% YoY and net income climbed +15.82% YoY, delivering both top‑line growth and margin expansion that are unusual relative to the prior three-year pattern. That combination—revenue acceleration with expanding margins—creates an immediate tension: the business is generating more profit per dollar of revenue even as corporate activity (notably acquisitions) is reshaping the balance sheet. These are the core income-statement facts that drive the rest of the analysis.

Digging into the components, gross profit increased to $10.09B in FY2024, putting the gross margin at 49.44% (10.09 / 20.41). Operating income was $7.57B, an operating margin of 37.10% (7.57 / 20.41), and EBITDA was $8.21B for an EBITDA margin of 40.28% (8.21 / 20.41). The company therefore converted an outsized share of revenue into operating profits in 2024, driven by a combination of revenue mix and expense control: operating expenses increased in absolute terms from $2.31B (FY2023) to $2.51B (FY2024), but as a percent of revenue they declined because revenue grew faster than expenses.

Two structural oddities show up inside the line items and deserve explicit note. First, the disclosed selling, general & administrative (SG&A) expense of $2.26B plus research & development (R&D) expense of $674MM sum to $2.934B, which exceeds the reported operating expenses line of $2.51B; that arithmetic inconsistency suggests classification or rounding differences in the raw dataset. Second, the pace of margin recovery is uneven across years: after a revenue decline from 2021 to 2022, FY2024 is a clear rebound year and the top-line now exceeds the FY2021 level, but underlying three‑year growth remains modest. These are data-driven issues to monitor rather than narrative assumptions.

Viewed over the cycle, the three-year compound annual growth rate for revenue (2021→2024) is modest: CAGR = (20.41 / 19.37)^(1/3) - 1 = +1.75%. That low multi-year organic growth contrasts with the large single‑year jump in 2024 and indicates that FY2024 is more a recovery and margin story than evidence of sustained acceleration. All FY line items referenced above are from the company’s FY filings (FY2024 filing, 2025-02-25).

Cash flow quality#

Operating cash flow and free cash flow tell a consistent story of high profitability that converts into cash but is being redeployed aggressively. In FY2024 BlackRock generated $4.96B of cash from operations and $4.70B of free cash flow after $255MM of capital expenditures. The operating‑cash‑to‑net‑income conversion ratio is 4.96 / 6.37 = 77.86%, which signals substantial, but not complete, cash realization of accounting earnings in the year.

Free cash flow shows both strength and tension. FCF of $4.70B covers cash dividends of $3.10B by 4.70 / 3.10 = 151.61%, so the dividend is comfortably funded by free cash flow. However, when share repurchases of $1.93B are added, total distributions to shareholders equal $5.03B, which is 107.02% of FY2024 FCF (5.03 / 4.70). In short, dividends are comfortably covered by FCF, but the combination of dividends plus buybacks exceeded FCF and required external financing or balance-sheet adjustments to fund the gap.

The investing and financing lines explain how the company financed that excess and how it reshaped the balance sheet. Net cash used for investing activities was -$3.00B in FY2024, driven overwhelmingly by acquisitions net of $2.94B; capital expenditure was small relative to acquisitions. Net cash provided by financing activities was +$2.24B, reflecting new debt issuance and other financing inflows that more than offset distributions. Put differently, FY2024 shows robust cash generation and FCF, but a strategic choice to use debt and cash to fund acquisitions and buybacks rather than to let leverage decline.

From a cash-quality standpoint, the positive takeaways are stable operating cash generation (CFO remains near ~$5B) and a multi-year record of meaningful FCF. The caveat is that cash generation is being redeployed into M&A and shareholder returns at a pace that requires financing; that pattern increases sensitivity to future cash conversion and the returns on acquisitions. All cash flow numbers referenced are from the FY filings (FY2024 filing, 2025-02-25).

Balance sheet changes#

FY2024 materially changed the shape of BlackRock’s balance sheet: total assets rose to $138.62B from $123.21B the prior year (+$15.41B), and goodwill & intangible assets jumped to $46.69B from $33.78B — an increase of $12.91B. That goodwill increase accounts for the majority of the asset growth and is directly tied to acquisition activity recorded in the cash flow statement. Goodwill/intangibles now represent 33.69% of total assets (46.69 / 138.62), a sizable concentration of value in intangible assets that elevates impairment risk if future performance does not meet acquisition assumptions.

Leverage increased but remains moderate on several measures. Total debt rose to $14.22B (long‑term debt $13.30B), up from $9.70B in FY2023, while net debt (debt minus cash & equivalents) increased to $1.46B from $966MM. Using year‑end balances, debt/equity is 14.22 / 47.49 = 0.30x, and total liabilities to assets are 89.26 / 138.62 = 64.39%. Net debt to EBITDA using FY2024 balances is 1.46 / 8.21 = 0.18x, a low absolute level that reflects the company’s large cash balance and substantial EBITDA.

Liquidity metrics require a data‑sanity note before interpretation. The dataset reports a TTM current ratio of 4.4x, but when I compute the current ratio from the FY2024 balance sheet (total current assets $25.19B / total current liabilities $11.52B) the result is 2.19x. Earlier years in the raw data show implausibly small current liabilities (e.g., $1.24B in 2023), which appears to be a formatting or truncation error in the supplied raw fields. Because the FY2024 current liabilities and other cross‑statements reconcile with cash flow movements and the net‑debt calculation, I treat the FY2024 balance‑sheet items as the most reliable for liquidity analysis and therefore use 2.19x as the computed current ratio. When datasets contain inconsistencies, the most recent, internally consistent filing typically warrants priority.

Equity increased to $47.49B, up $8.14B year over year; retained earnings rose by exactly the expected amount given reported net income and dividends (35.61 vs 32.34 = +$3.27B, which equals net income $6.37B less dividends $3.10B). The net effect is a larger equity base alongside increased goodwill and higher debt — a balance sheet reshaped by acquisition accounting and financing choices.

Key ratios and valuation (calculated)#

To ground the narrative in direct calculations, here are the core ratio computations using the FY2024 year‑end numbers and the market data provided (price $1,160.16; market cap $179.65B). Enterprise value is market cap + total debt - cash = 179.654 + 14.22 - 12.76 = $181.11B, and EV / EBITDA = 181.114 / 8.21 = 22.06x. That EV/EBITDA uses contemporaneous market cap and FY2024 EBITDA and should be read as a snapshot using the raw inputs supplied.

Other valuation and leverage metrics computed directly from the dataset are: price / book = 179.654 / 47.49 = 3.78x, price / sales = 179.654 / 20.41 = 8.81x, and market cap / net income (market‑implied P/E) = 179.654 / 6.37 = 28.20x. Using the per‑share EPS reported in the raw quote (EPS ≈ 41.41) gives a price / EPS = 1160.16 / 41.41 = 28.02x, which is nearly identical to the market-cap approach and confirms consistency between the share‑level and aggregate calculations. Dividend yield computed from dividend per share of $20.62 and price $1,160.16 equals 20.62 / 1160.16 = 1.78%.

Profitability and capital‑efficiency metrics computed directly are also instructive. Return on equity using net income divided by average equity for FY2024 = 6.37 / ((47.49 + 39.35) / 2) = 14.67%. Return on assets using net income / average total assets = 6.37 / ((138.62 + 123.21) / 2) = 4.87%. A practical ROIC estimate (NOPAT / invested capital) using operating income after tax and invested capital = operating income * (1 - effective tax rate) / (total debt + equity - cash) produces ROIC ≈ [7.57 * (1 - 23.17%)] / (14.22 + 47.49 - 12.76) = 5.819 / 48.95 = 11.89%. That ROIC is materially higher than the dataset’s reported TTM ROIC of 4.04%, and the divergence is explained by definitional choices (my ROIC uses operating income and a simple invested‑capital base; the dataset’s ROIC likely applies a broader denominator or different temporal basis).

What the numbers reveal#

First, BlackRock’s core business in FY2024 is highly cash‑generative and profitable: margins across gross, operating and net lines expanded while operating cash flow and free cash flow remain substantial in absolute and margin terms. The company’s ability to convert a large share of accounting profit into cash (CFO / net income ~77.9%) and to produce FCF equaling ~23.0% of revenue supports ongoing shareholder returns such as dividends and buybacks.

Second, management materially redeployed cash into acquisitions during FY2024, which drove the $12.91B goodwill increase and the rise in total debt. That strategy changed the asset mix toward intangible assets, raising the company’s sensitivity to acquisition execution and goodwill‑impairment risk. The balance‑sheet effect is clear: leverage rose in absolute dollars even as net debt stayed modest because of a contemporaneous rise in cash balances.

Third, the aggregate leverage picture remains conservative by many measures — net debt / EBITDA of 0.18x and debt / equity of 0.30x are low — but the financing pattern (debt issuance + acquisitions + shareholder returns) creates potential short‑to‑medium term dependencies on sustained cash conversion and deal synergies. Put simply, operating performance is robust and funds current dividends, but the scale and pace of M&A require the company to demonstrate measurable returns on those transactions going forward.

Featured snippet (50 words)#

BlackRock’s FY2024 shows $20.41B revenue (+14.28% YoY) and $6.37B net income (+15.82% YoY). Operating cash flow was $4.96B and free cash flow $4.70B, while acquisitions lifted goodwill by $12.91B and increased debt to $14.22B, reshaping the balance sheet and raising integration risk.

What this means for investors#

The data-driven implications are straightforward. Strong margins and sustained cash conversion underpin an attractive cash‑return capacity: dividends are covered by FCF and buybacks are meaningful. That pattern supports income-oriented outcomes within the capital allocation framework, but it is not a proxy for valuation judgment or an explicit investment recommendation.

Investors should watch two measurable items closely: (1) integration performance and impairment risk tied to the $46.69B goodwill and intangible balance, and (2) the company’s ability to maintain operating cash conversion near current levels while absorbing additional acquisition spending. Both items are directly observable in future filings through goodwill testing disclosures and cash‑flow trends.

Finally, valuation multiples (EV/EBITDA ≈ 22.06x, P/B ≈ 3.78x, market‑implied P/E ≈ 28x) reflect a premium for stable, fee‑based cash flows and size. Those multiples mean that execution on acquisitions and continued cash generation will be necessary to sustain investor value because the company’s price embeds expectations for continued high profitability.

Key takeaways#

BlackRock delivered a clear rebound in FY2024: $20.41B revenue and $6.37B net income, with margin expansion across the income statement and strong operating cash conversion of 77.86%. Free cash flow covered cash dividends and materially contributed to shareholder returns in the form of buybacks, but total distributions exceeded FCF and were partially financed through increased debt.

The largest balance‑sheet change was a $12.91B rise in goodwill and intangibles to $46.69B, tied to acquisitions; goodwill now represents roughly 34% of assets, elevating impairment risk if acquired assets underperform. Leverage remains moderate on a net basis (net debt / EBITDA = 0.18x), but total debt rose to $14.22B, and financing activity drove positive net cash from financing in FY2024.

Analytically, the company shows high cash generation and disciplined dividend funding, paired with an aggressive M&A posture that reshapes asset composition and requires measurable returns over coming periods. The numbers favor a narrative of operational strength moderated by transaction execution risk and the need for continued cash conversion.

Conclusion#

BlackRock’s FY2024 is a textbook example of profitable, cash‑generative operations being redeployed into growth via acquisitions while continuing to return capital to shareholders. The company posted +14.28% revenue growth and +15.82% net‑income growth in 2024, produced robust free cash flow of $4.70B, and financed $2.94B of acquisitions that lifted goodwill by $12.91B. Those facts create two simultaneous realities: strong operating performance and a balance sheet more exposed to acquisition execution and goodwill risk. Monitoring future cash conversion, acquisition returns and impairment disclosures will be the clearest, data‑driven way to judge whether the FY2024 tradeoff between growth via M&A and balance‑sheet conservatism is delivering the intended long‑term value.

(All financial calculations and ratios above are independently computed from the supplied FY2021–FY2024 statement line items and the provided market data; FY filings referenced by their filing dates in the dataset: FY2024 filing (filed 2025-02-25).)