Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Nucor's free cash flow turned negative in the first quarter of fiscal 2024, driven by lower operating cash flow relative to capital spending. The cash conversion weakened compared to both the prior quarter and the year-ago period.
- Revenue held relatively stable, but operating cash flow fell sharply, while capital expenditure remained elevated. As a result, free cash flow turned deeply negative and the free cash flow margin contracted.
- Compared to the immediately preceding quarter, operating cash flow fell substantially and free cash flow shifted from positive to negative. Versus the same quarter a year earlier, both operating cash flow and free cash flow were lower, despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$210.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$460.0M
Cash generated by operations before capital spending.
CapEx
$670.0M
Capital spending and related asset purchases.
FCF margin
-2.6%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $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% |
| 2024-03-30 | $8.1B | $460.0M | $670.0M | -$210.0M | -2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -24.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.2% | 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 Shortfall
Operating cash flow fell significantly and was insufficient to fund capital expenditure, resulting in negative free cash flow. This marks a sharp reversal from the prior quarter's positive performance.
This creates immediate pressure on free cash flow generation and may constrain internal funding for future investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held relatively stable, but operating cash flow fell sharply, while capital expenditure remained elevated. As a result, free cash flow turned deeply negative and the free cash flow margin contracted.
Compared to the immediately preceding quarter, operating cash flow fell substantially and free cash flow shifted from positive to negative. Versus the same quarter a year earlier, both operating cash flow and free cash flow were lower, despite higher capital expenditure.
Monitor whether operating cash flow can recover to a level that comfortably covers ongoing capital expenditure.