Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
S&P Global's free cash flow margin improved significantly in the quarter, driven by operating cash flow growth that outpaced revenue expansion. Capital expenditure increased but remained modest relative to operating cash flow.
- Revenue rose compared to both the prior quarter and the same quarter last year, while operating cash flow increased at a faster rate, resulting in a higher free cash flow margin. Capital expenditure was higher than in both comparison periods, but the conversion of revenue into free cash flow strengthened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure also higher. Versus the same quarter one year earlier, all metrics were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
40.8%
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 | $3.2B | $594.0M | $28.0M | $566.0M | 17.9% |
| 2023-06-30 | $3.1B | $769.0M | $31.0M | $738.0M | 23.8% |
| 2023-09-30 | $3.1B | $1.0B | $36.0M | $977.0M | 31.7% |
| 2023-12-31 | $3.2B | $1.3B | $48.0M | $1.3B | 40.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 222.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.2B | 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 Growth
Operating cash flow increased at a faster pace than revenue, driving a higher free cash flow margin. This was the strongest observable factor in the quarter's performance.
The stronger operating cash flow relative to revenue directly lifted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to both the prior quarter and the same quarter last year, while operating cash flow increased at a faster rate, resulting in a higher free cash flow margin. Capital expenditure was higher than in both comparison periods, but the conversion of revenue into free cash flow strengthened.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure also higher. Versus the same quarter one year earlier, all metrics were higher, and the free cash flow margin improved.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter.