Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the fourth quarter, driven by a large operating cash outflow. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Revenue was substantial, yet operating cash flow was deeply negative, resulting in a negative free cash flow and free cash flow margin. Capital expenditure was modest relative to revenue, so the cash conversion weakness stemmed entirely from operating cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow were less negative, indicating a sequential improvement. Versus the same quarter last year, operating cash flow turned from positive to negative, and free cash flow became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$490.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$741.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$587.0M
Cash generated by operations before capital spending.
CapEx
$154.0M
Capital spending and related asset purchases.
FCF margin
-2.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-03-31 | $36.3B | -$456.0M | $151.0M | -$607.0M | -1.7% |
| 2024-06-30 | $36.0B | $2.2B | $186.0M | $2.0B | 5.5% |
| 2024-09-30 | $36.9B | -$978.0M | $153.0M | -$1.1B | -3.1% |
| 2024-12-31 | $36.3B | -$587.0M | $154.0M | -$741.0M | -2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -261.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Weakness
Operating cash flow was negative, driven by net earnings almost entirely offset by an increase in pharmacy receivables, a decrease in net risk adjustment payables, and higher state premium receivables.
This operating cash outflow was the strongest observable driver of the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was substantial, yet operating cash flow was deeply negative, resulting in a negative free cash flow and free cash flow margin. Capital expenditure was modest relative to revenue, so the cash conversion weakness stemmed entirely from operating cash flow.
Compared to the prior quarter, operating cash flow and free cash flow were less negative, indicating a sequential improvement. Versus the same quarter last year, operating cash flow turned from positive to negative, and free cash flow became more negative.
Monitor the trajectory of operating cash flow, as it was the primary driver of negative free cash flow in the quarter.