Margins

FCF Margin

Free cash flow as a percentage of revenue.

Definition

FCF margin shows what fraction of revenue ends up as actual cash available to pay shareholders or reinvest. Unlike net income, it isn't distorted by non-cash charges, accruals, or working-capital timing.

Formula

(Free Cash Flow ÷ Revenue) × 100

Why it matters

FCF margin is the truest measure of a business's cash-generating power. A company with consistently high FCF margin can fund growth, pay dividends, and weather downturns from internally generated cash. Net margin can flatter; FCF margin tells the truth.

How Standard Equity uses it

Shown in the main table. Not shown for banks, insurers or broker-dealers, whose cash flow swings with loans, deposits or float: banks show net interest income in its place.

The metric

CategoryMargins
Unit%
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