Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter ended December 31, 2023, Fox Corporation generated negative free cash flow, driven by operating cash outflows. Free cash flow and margin weakened from the prior quarter but were similar to the same quarter last year.
- Revenue increased from the prior quarter, but operating cash flow turned negative, leading to a wider free cash flow deficit. Capital expenditure remained stable, so the cash conversion was primarily affected by operating cash flows.
- Compared to the preceding quarter, revenue improved but operating cash flow weakened significantly, resulting in a deeper free cash flow deficit and a lower margin. Versus the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were relatively stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$615.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$536.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
-14.5%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $4.1B | $1.6B | $84.0M | $1.5B | 36.3% |
| 2023-06-30 | $3.0B | $493.0M | $120.0M | $373.0M | 12.3% |
| 2023-09-30 | $3.2B | $1.0M | $71.0M | -$70.0M | -2.2% |
| 2023-12-31 | $4.2B | -$536.0M | $79.0M | -$615.0M | -14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -534.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Deterioration
Operating cash flow moved from near zero in the prior quarter to a substantial outflow, which was the primary reason for the negative free cash flow. Capital expenditure did not change materially.
If operating cash flow persists at a negative level, free cash flow may remain negative without a reduction in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, but operating cash flow turned negative, leading to a wider free cash flow deficit. Capital expenditure remained stable, so the cash conversion was primarily affected by operating cash flows.
Compared to the preceding quarter, revenue improved but operating cash flow weakened significantly, resulting in a deeper free cash flow deficit and a lower margin. Versus the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were relatively stable.
Monitor whether operating cash flow can return to a positive level in coming quarters.