Free cash flow to revenue (FCF/revenue)
The share of revenue that survives as free cash flow.
It is the cash margin of the business.
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
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
- Lumpy capital spending makes single years unreliable.
Questions
How is free cash flow to revenue calculated?
Free cash flow / revenue x 100. Measured over the latest complete fiscal year, as filed.
What does free cash flow to revenue tell a value investor?
It is the cash margin of the business.
When does free cash flow to revenue mislead?
There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading. Lumpy capital spending makes single years unreliable.