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 rose year over year but decreased from the prior quarter. The sequential decline was driven by lower operating cash flow, partially offset by stable capital expenditure.
- Revenue increased, but operating cash flow declined sequentially, leading to a lower free cash flow margin. Year over year, both revenue and operating cash flow improved, resulting in higher free cash flow and margin.
- Compared to the previous quarter, free cash flow and margin weakened due to lower operating cash flow. Compared to the same quarter last year, free cash flow and margin improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$35.0M
Capital spending and related asset purchases.
FCF margin
39.4%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $3.2B | $1.3B | $48.0M | $1.3B | 40.8% |
| 2024-03-31 | $3.5B | $948.0M | $24.0M | $924.0M | 26.5% |
| 2024-06-30 | $3.5B | $1.6B | $32.0M | $1.5B | 42.9% |
| 2024-09-30 | $3.6B | $1.4B | $35.0M | $1.4B | 39.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.7B | 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
Operating cash flow declined sequentially, causing free cash flow to decrease despite higher revenue.
A sustained decline in operating cash flow could pressure future free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow declined sequentially, leading to a lower free cash flow margin. Year over year, both revenue and operating cash flow improved, resulting in higher free cash flow and margin.
Compared to the previous quarter, free cash flow and margin weakened due to lower operating cash flow. Compared to the same quarter last year, free cash flow and margin improved substantially.
Monitor operating cash flow trends given the sequential decline.