Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Hasbro's free cash flow declined in the current quarter compared to both the prior quarter and the same quarter a year earlier, as revenue was lower and capital expenditure was higher. The free cash flow margin weakened from the prior quarter and from the year-ago quarter.
- Cash conversion weakened as operating cash flow decreased relative to revenue and capital expenditure increased, resulting in lower free cash flow and a narrower margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Relative to the same quarter one year earlier, revenue and operating cash flow were also lower, and capital expenditure was higher, leading to a weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$169.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$35.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$88.8M
Cash generated by operations before capital spending.
CapEx
$53.2M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2022-06-26 | $1.3B | $13.1M | $46.6M | -$33.5M | -2.5% |
| 2022-09-25 | $1.7B | $114.4M | $54.9M | $59.5M | 3.6% |
| 2022-12-25 | $1.7B | $110.7M | $2.5M | $108.2M | 6.4% |
| 2023-04-02 | $1.0B | $88.8M | $53.2M | $35.6M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -161.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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.
Higher capital expenditure
Capital expenditure in the current quarter was higher than in both the prior quarter and the year-ago quarter, which along with lower operating cash flow reduced free cash flow.
The increase in capital spending, if it continues, may further pressure free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow decreased relative to revenue and capital expenditure increased, resulting in lower free cash flow and a narrower margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Relative to the same quarter one year earlier, revenue and operating cash flow were also lower, and capital expenditure was higher, leading to a weaker free cash flow margin.
Monitor capital expenditure levels and the risk of production delays from strikes in the entertainment business, as mentioned in the filing.