Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter a year earlier. Operating cash flow and free cash flow improved, resulting in a stronger free cash flow margin.
- The company converted a higher proportion of revenue into operating cash flow, while capital expenditure stayed low relative to that cash flow, leading to a free cash flow margin that was notably higher than in the preceding quarter.
- Revenue, operating cash flow, free cash flow, and the free cash flow margin were all higher than both the prior quarter and the same quarter one year earlier. The improvement versus the prior quarter was especially pronounced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
24.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $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% |
| 2024-03-31 | $17.2B | $4.2B | $50.0M | $4.2B | 24.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 179.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Underwriting Profitability
According to the filing, underwriting profit exceeded the company's target, supported by growth in premiums and policies in force. This strength was a key factor behind the higher operating cash flow.
Strong underwriting results contributed directly to the significant increase in operating cash flow and free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher proportion of revenue into operating cash flow, while capital expenditure stayed low relative to that cash flow, leading to a free cash flow margin that was notably higher than in the preceding quarter.
Revenue, operating cash flow, free cash flow, and the free cash flow margin were all higher than both the prior quarter and the same quarter one year earlier. The improvement versus the prior quarter was especially pronounced.
Monitor the trend of loss payments relative to premium collections, as the filing indicates that loss payments increased but at a slower pace than premiums.