Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Evergy's free cash flow turned positive in the third fiscal quarter, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin improved significantly compared to both the prior quarter and the same period a year earlier.
- The company converted a larger share of revenue into operating cash flow, while capital expenditure decreased, resulting in a strong free cash flow margin. Operating cash flow grew relative to revenue, enhancing cash conversion efficiency.
- Compared to the prior quarter, free cash flow swung from negative to positive as operating cash flow increased and capital spending decreased. Year over year, free cash flow and margin both improved, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$481.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$427.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$953.3M
Cash generated by operations before capital spending.
CapEx
$526.3M
Capital spending and related asset purchases.
FCF margin
23.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.2B | $428.5M | $676.1M | -$247.6M | -21.4% |
| 2024-03-31 | $1.3B | $317.3M | $618.6M | -$301.3M | -23.5% |
| 2024-06-30 | $1.4B | $317.5M | $677.5M | -$360.0M | -25.6% |
| 2024-09-30 | $1.8B | $953.3M | $526.3M | $427.0M | 23.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Generation and Lower Capex
Operating cash flow increased substantially from both the prior quarter and the year-ago period, while capital expenditure decreased sequentially, driving free cash flow to a positive figure and expanding the margin.
This shift significantly strengthened free cash flow and margin, indicating more efficient cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into operating cash flow, while capital expenditure decreased, resulting in a strong free cash flow margin. Operating cash flow grew relative to revenue, enhancing cash conversion efficiency.
Compared to the prior quarter, free cash flow swung from negative to positive as operating cash flow increased and capital spending decreased. Year over year, free cash flow and margin both improved, supported by higher revenue and operating cash flow.
Monitor capital expenditure levels, as they declined from the previous quarter but remain a significant use of cash.