Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the prior quarter, while capital expenditure increased, resulting in a decline in free cash flow and margin. Compared to the same quarter last year, operating cash flow improved and capital expenditure decreased, leading to a positive free cash flow versus a negative result.
- The conversion from revenue to free cash flow weakened sequentially, as a lower revenue base and a higher capital expenditure reduced free cash flow and margin. Year-over-year, the conversion improved because operating cash flow was higher and capital expenditure was lower, reversing a negative free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a combination of lower revenue, lower operating cash flow, and higher capital expenditure. Versus the same quarter a year ago, free cash flow and margin improved significantly, turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$124.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$476.3M
Cash generated by operations before capital spending.
CapEx
$351.6M
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 2022-05-31 | $2.4B | $758.2M | $196.6M | $561.6M | 23.8% |
| 2022-08-31 | $2.7B | $896.1M | $238.4M | $657.7M | 24.8% |
| 2022-11-30 | $2.4B | $626.3M | $248.8M | $377.5M | 15.5% |
| 2023-02-28 | $2.0B | $476.3M | $351.6M | $124.7M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than the prior quarter, reducing free cash flow even though operating cash flow also declined. The filing notes that capital expenditures are tied to beer expansion, optimization, and construction projects.
Continued elevated capital spending may pressure free cash flow in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to free cash flow weakened sequentially, as a lower revenue base and a higher capital expenditure reduced free cash flow and margin. Year-over-year, the conversion improved because operating cash flow was higher and capital expenditure was lower, reversing a negative free cash flow margin.
Compared to the prior quarter, free cash flow and margin were lower, driven by a combination of lower revenue, lower operating cash flow, and higher capital expenditure. Versus the same quarter a year ago, free cash flow and margin improved significantly, turning from negative to positive.
Monitor capital expenditure trends, which the filing references in connection with beer expansion and construction activities.