Free cash flow growth (FCF growth 1Y)
How much free cash flow changed against the prior year.
Cash growing alongside profit is the confirmation that the profit is real.
How it is computed here
(Free cash flow this year - last year) / absolute value of last year x 100
Measured over the latest complete fiscal year, as filed. Filed under growth. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Free cash flow is the lumpiest line in the accounts; a single year is close to noise.
- Sign flips make the percentage meaningless when either year is negative.
Questions
How is free cash flow growth calculated?
(Free cash flow this year - last year) / absolute value of last year x 100. Measured over the latest complete fiscal year, as filed.
What does free cash flow growth tell a value investor?
Cash growing alongside profit is the confirmation that the profit is real.
When does free cash flow growth mislead?
Free cash flow is the lumpiest line in the accounts; a single year is close to noise. Sign flips make the percentage meaningless when either year is negative.