Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Nucor's free cash flow and margin weakened in the fourth quarter compared to both the prior quarter and the same quarter a year earlier. Revenue and operating cash flow were lower, while capital expenditure was higher.
- Cash conversion weakened as operating cash flow declined relative to revenue, and capital expenditure increased, resulting in a lower free cash flow margin.
- Compared to the prior quarter and the year-ago quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Capital expenditure was higher than both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$802.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$717.8M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $8.7B | $1.2B | $531.7M | $675.4M | 7.8% |
| 2023-07-01 | $9.5B | $1.9B | $525.4M | $1.4B | 14.6% |
| 2023-09-30 | $8.8B | $2.5B | $439.2M | $2.0B | 23.1% |
| 2023-12-31 | $7.7B | $1.5B | $717.8M | $802.6M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | 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.
Lower operating cash flow
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, while capital expenditure increased. This combination drove the decline in free cash flow.
Free cash flow and margin fell significantly from the prior periods.
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 declined relative to revenue, and capital expenditure increased, resulting in a lower free cash flow margin.
Compared to the prior quarter and the year-ago quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Capital expenditure was higher than both periods.
Monitor the company's cash and cash equivalents position as highlighted in the liquidity discussion.