Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Progressive's filing describes its insurance holding company structure and diverse insurance and non-insurance operations. For the quarter, revenue increased from both the prior quarter and the same quarter last year, while operating cash flow and free cash flow declined from the prior quarter but rose substantially from a year ago.
- Revenue was higher than the preceding quarter and the year-ago period. Operating cash flow and free cash flow were lower than the prior quarter but significantly higher than the year-ago quarter. Capital expenditure increased relative to both periods. The free cash flow margin weakened from the prior quarter but improved from the same quarter last year.
- Compared to the immediately preceding quarter, revenue grew, but operating cash flow, free cash flow, and margin all decreased. Year-over-year, all metrics improved, with free cash flow and margin notably higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$82.1M
Capital spending and related asset purchases.
FCF margin
13.9%
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 | $14.3B | $2.4B | $43.2M | $2.4B | 16.8% |
| 2023-06-30 | $15.4B | $2.3B | $90.4M | $2.2B | 14.6% |
| 2023-09-30 | $15.6B | $3.4B | $36.3M | $3.4B | 21.7% |
| 2023-12-31 | $16.9B | $2.4B | $82.1M | $2.4B | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Year-over-year free cash flow improvement
Free cash flow was substantially higher than the same quarter last year, alongside a higher revenue base and operating cash flow.
The free cash flow margin strengthened compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter and the year-ago period. Operating cash flow and free cash flow were lower than the prior quarter but significantly higher than the year-ago quarter. Capital expenditure increased relative to both periods. The free cash flow margin weakened from the prior quarter but improved from the same quarter last year.
Compared to the immediately preceding quarter, revenue grew, but operating cash flow, free cash flow, and margin all decreased. Year-over-year, all metrics improved, with free cash flow and margin notably higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly impacts free cash flow.