Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Loews Corporation, a holding company with subsidiaries in insurance, natural gas, and hotels, reported a higher revenue compared to both the prior quarter and the same quarter a year ago. However, its operating cash flow and free cash flow were notably lower, resulting in a sharply weakened free cash flow margin.
- Revenue increased but operating cash flow decreased significantly, while capital expenditure was higher than the prior quarter but unchanged from a year ago. Consequently, free cash flow and free cash flow margin were substantially lower than both comparison periods.
- Relative to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter one year earlier, revenue was higher while free cash flow and margin were lower, with operating cash flow also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$254.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$477.0M
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
36.3%
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 | $571.0M | $719.0M | $159.0M | $560.0M | 98.1% |
| 2023-06-30 | $552.0M | $1.4B | $140.0M | $1.3B | 234.4% |
| 2023-09-30 | $537.0M | $1.3B | $164.0M | $1.1B | 207.3% |
| 2023-12-31 | $700.0M | $477.0M | $223.0M | $254.0M | 36.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.9% | 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 decline
Operating cash flow was markedly lower than both the prior quarter and the year‑ago period, driving a substantial reduction in free cash flow and margin.
The weaker cash conversion from revenue to operating cash flow may pressure free cash flow sustainability.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased but operating cash flow decreased significantly, while capital expenditure was higher than the prior quarter but unchanged from a year ago. Consequently, free cash flow and free cash flow margin were substantially lower than both comparison periods.
Relative to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter one year earlier, revenue was higher while free cash flow and margin were lower, with operating cash flow also lower.
Monitor the trend in operating cash flow generation in coming quarters.