Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The Hartford generated strong free cash flow in the quarter, with cash conversion improving sequentially and compared to the same quarter last year. The quarter featured a significant shift in revenue composition, yet operating cash flow remained robust and capital expenditure moderated.
- Operating cash flow was substantially higher than revenue, resulting in a free cash flow margin well above one hundred percent. Capital expenditure was minimal relative to operating cash flow, further supporting free cash flow generation.
- Compared to the preceding quarter, revenue was slightly higher while operating and free cash flows both improved, and capital expenditure decreased. Versus the same quarter a year earlier, revenue was substantially lower but operating and free cash flows were higher, and capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$26.0M
Capital spending and related asset purchases.
FCF margin
495.4%
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 | $352.0M | $1.1B | $50.0M | $1.0B | 297.4% |
| 2024-06-30 | $364.0M | $1.3B | $61.0M | $1.2B | 329.4% |
| 2024-09-30 | $369.0M | $1.7B | $60.0M | $1.6B | 438.5% |
| 2024-12-31 | $373.0M | $1.9B | $26.0M | $1.8B | 495.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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 Strength
Operating cash flow improved both sequentially and year over year, despite a large drop in reported revenue. This was the primary contributor to the increase in free cash flow.
The strong operating cash flow enabled the company to generate free cash flow well in excess of revenue, a notable outcome for the period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than revenue, resulting in a free cash flow margin well above one hundred percent. Capital expenditure was minimal relative to operating cash flow, further supporting free cash flow generation.
Compared to the preceding quarter, revenue was slightly higher while operating and free cash flows both improved, and capital expenditure decreased. Versus the same quarter a year earlier, revenue was substantially lower but operating and free cash flows were higher, and capital expenditure was also lower.
The significant decline in capital expenditure compared to both prior periods warrants monitoring for sustainability.