FCF Margins (%)
FCF Margins = Free Cash Flow/Turnover
Free cash flow margins and shows the company's free cash flow in relation to its turnover.
FCF Margins shows how much of the company's cash flow is saved in cash. It also gives an idea of how much investment a company makes in relation to the company's sales.
Things to keep in mind
- An increasing margin is usually positive as it shows that the company is increasing its Free Cash Flow in relation to its turnover.