Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Alliant Energy posted negative free cash flow for the quarter, but the deficit narrowed from both the prior quarter and the same period last year. Operating cash flow improved substantially year over year, while capital expenditure decreased sequentially.
- Revenue conversion into operating cash flow strengthened compared to a year earlier but weakened from the prior quarter; the free cash flow margin remained negative, though less so than in prior periods.
- Relative to the preceding quarter, revenue and operating cash flow were lower, but a reduction in capital expenditure led to an improved free cash flow. Versus the year-ago quarter, operating cash flow was significantly higher, partially offset by increased capital spending, resulting in a narrower free cash flow deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$137.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$255.0M
Cash generated by operations before capital spending.
CapEx
$392.0M
Capital spending and related asset purchases.
FCF margin
-15.3%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $1.1B | $311.0M | $443.0M | -$132.0M | -12.3% |
| 2023-12-31 | $961.0M | $245.0M | n/a | n/a | n/a |
| 2024-03-31 | $1.0B | $307.0M | $478.0M | -$171.0M | -16.6% |
| 2024-06-30 | $894.0M | $255.0M | $392.0M | -$137.0M | -15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -157.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 43.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow was considerably higher than in the same quarter last year, which, combined with lower capital expenditure versus the prior quarter, helped narrow the free cash flow deficit. The filing noted the company's liquidity position remains supported by cash and credit facilities.
Strengthened operating cash flow provides more internal funding for ongoing capital investments, reducing reliance on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow strengthened compared to a year earlier but weakened from the prior quarter; the free cash flow margin remained negative, though less so than in prior periods.
Relative to the preceding quarter, revenue and operating cash flow were lower, but a reduction in capital expenditure led to an improved free cash flow. Versus the year-ago quarter, operating cash flow was significantly higher, partially offset by increased capital spending, resulting in a narrower free cash flow deficit.
Monitor the relationship between capital expenditure and operating cash flow, as the company continues to invest while maintaining a negative free cash position.