FCF margin

Free cash flow margin

One of the 61 measures in Stock Scorer, under Quality — How much of the revenue is really kept — and what did it take to earn it?

How it is worked out

(Operating cash flow − capital expenditure) ÷ revenue × 100

Free cash flow is the cash from operations that survives the spending needed to maintain and grow the asset base. The same sum as owner earnings, without the deduction for stock pay.

How to read it

the owner-earnings measure without the stock-compensation deduction, so read the two together: the gap between them is the equity cost

Which figures it needs

Computed from 3 figures taken from the filing:

• ocf
• capex
• revenue

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• NetCashProvidedByUsedInOperatingActivities
• NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
• CashFlowsFromUsedInOperatingActivities
• CashFlowsFromUsedInOperatingActivitiesContinuingOperations
• PaymentsToAcquirePropertyPlantAndEquipment
• PaymentsToAcquireProductiveAssets
• PaymentsToAcquirePropertyPlantAndEquipmentExcludingInterestCapitalized
• PaymentsToAcquireOtherPropertyPlantAndEquipment
• PaymentsToAcquireOtherProductiveAssets
• PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities
• PurchaseOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets
• RevenueFromContractWithCustomerExcludingAssessedTax
• Revenues
• RevenueFromContractWithCustomerIncludingAssessedTax
• SalesRevenueNet
• SalesRevenueServicesNet
• RevenueFromContractsWithCustomers
• Revenue

Whether it counts

This measure is not counted by default. It can be added to Quality on the dashboard, and it then takes its share of that dimension.