FCF margin
Percentage of sales that turns into free cash flow. Measures how efficiently sales convert into available cash.
FCF margin = Free Cash Flow ÷ Net revenue
Of every $100 invoiced, how many end up as free cash — what's left after paying suppliers, payroll and taxes, and after maintaining and investing in assets. It's the most honest margin of all, because accounting profit admits judgement calls and cash doesn't: either it's in the account or it isn't.
Next to the net margin it tells the other half of the story. If profit grows but the FCF margin doesn't follow for several years, the money is getting stuck along the way: inventory that doesn't turn, customers who don't pay, or capex far above depreciation. Sometimes that's legitimate expansion; sometimes it's profit that never gets collected.
In seasonal businesses or those with long projects, a single year can come out negative with nothing being wrong. That's why the margins tab shows the full series: what you judge is the average level and its stability.
Where to see it on ValuatePad
Year by year, for every company, in the tab Margins.