Growth & Momentum
Free Cash Flow Growth QoQ
Shows how much free cash after required reinvestment rises or falls between consecutive quarters. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exaggerate t
Free Cash Flow Growth QoQ
freeCashFlowGrowthQoq · Growth & Momentum
- Definition
- Shows how much free cash after required reinvestment rises or falls between consecutive quarters. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exaggerate the signal.
- Calculation
- (Current quarter value - previous quarter value) / absolute previous quarter value.
- Uses
- Useful for detecting acceleration, deterioration and persistence. It works best in businesses with recurring or secular demand; it is weaker in cyclicals, commodities, banks, insurers and turnarounds. Cross-check with margins, ROIC, FCF per share, debt and dilution.
