Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The Hartford Insurance Group generated strong free cash flow in the current quarter, driven by operating cash flow that far exceeded capital expenditure. The free cash flow margin was significantly higher than both the preceding quarter and the same quarter a year earlier.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow was higher than the year-ago quarter, while capital expenditure was slightly lower than the prior quarter. The resulting free cash flow and free cash flow margin were both strong relative to revenue, indicating efficient cash conversion.
- Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow improved, and the free cash flow margin strengthened considerably. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$822.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$871.0M
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
243.2%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | -$4.7B | $974.0M | $46.0M | $928.0M | -19.9% |
| 2022-09-30 | $348.0M | $1.5B | $45.0M | $1.5B | 424.1% |
| 2022-12-31 | $6.0B | $1.1B | $53.0M | $1.0B | 17.1% |
| 2023-03-31 | $338.0M | $871.0M | $49.0M | $822.0M | 243.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.5% | 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.
Strong operating cash flow
Operating cash flow was the primary driver of free cash flow, as it substantially exceeded capital expenditure. The free cash flow margin was above two hundred percent, indicating that cash generated from operations was extremely high relative to revenue.
High operating cash flow relative to revenue resulted in a free cash flow margin that was significantly higher than in the comparable quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow was higher than the year-ago quarter, while capital expenditure was slightly lower than the prior quarter. The resulting free cash flow and free cash flow margin were both strong relative to revenue, indicating efficient cash conversion.
Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow improved, and the free cash flow margin strengthened considerably. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in operating cash flow relative to revenue, as the current quarter's free cash flow margin was markedly higher than historical levels.