What Is Free Cash Flow (FCF)?
The Cash Flow card shows the real cash movements behind the income statement. Three key metrics: Operating Cash Flow (OCF), Capital Expenditure (CapEx), Free Cash Flow (FCF = OCF − CapEx). This is the cash a company can distribute from operations to shareholders.
6 min read
How to read
- Top right: a large number for TTM FCF, plus % change vs. the prior period and (if available) a 5-year FCF CAGR chip.
- A wide FCF sparkline shows history; click to open a modal with all cash flow series (FCF, OCF, CapEx, dividends, buybacks, net change in cash, D&A).
- OCF and CapEx each have their own boxes with mini sparklines.
- Four summary cells: FCF Margin (% of revenue), FCF Conversion (FCF/Net Income), CapEx Intensity (CapEx/Revenue), Shareholder Yield (dividends+buybacks/MCap).
- At the bottom, TTM dividends paid, buybacks, and total shareholder return.
Threshold ranges
- FCF Margin ≥ 15%Very cash-efficient (software/tech-like).
- FCF Conversion ≥ 100%FCF ≥ net income — strong cash conversion (automated flag threshold).
- CapEx Intensity < 5%Low capital requirement.
- CapEx Intensity > 15%Capital-intensive (industrials/airlines).
- Shareholder Yield ≥ 5%High cash return to shareholders.
- Multiple years of FCF < 0Continued cash burn — check runway.
Watch out for
- Don't jump to conclusions from a single year of positive FCF — one big CapEx investment can dent FCF for a year but build future revenue.
- The 'maintenance vs. growth' CapEx split matters; it isn't fully broken out on the balance sheet, but excess growth CapEx can boost future FCF.
- Share buybacks are 'shareholder return', but excessive levels can leave a company without growth capital later; it should balance with dividends.
Sector note
Software/SaaS firms commonly run 25-40% FCF margin; capital-intensive sectors (autos, airlines, industrials) typically 5-10%. REITs use a different cash metric (FFO).
Try on live data
See these metrics on real US stocks: