Free cash flow margin (FCF mgn)
How much of each unit of revenue survives as cash after operating costs and capital spending.
It is the rate at which sales turn into money the owner could remove, which is the only profitability that funds anything.
How it is computed here
Free cash flow / revenue x 100
Measured over the latest complete fiscal year, as filed. Filed under quality. 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
- A single heavy investment year drives it down without the business worsening.
- A stored exact zero used to mean absent data rather than a measured zero; the peer distributions exclude exact zeros for this reason.
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
Questions
How is free cash flow margin calculated?
Free cash flow / revenue x 100. Measured over the latest complete fiscal year, as filed.
What does free cash flow margin tell a value investor?
It is the rate at which sales turn into money the owner could remove, which is the only profitability that funds anything.
When does free cash flow margin mislead?
A single heavy investment year drives it down without the business worsening. A stored exact zero used to mean absent data rather than a measured zero; the peer distributions exclude exact zeros for this reason. There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.