Financial Metric
Free cash flow to net income compares cash remaining after capital expenditure with reported accounting profit.
Formula and measurement
FCF / Net Income = Free cash flow ÷ Net income × 100
PriceToWorth displays the metric from the latest suitable data available. Period definitions, share counts and provider updates can affect comparability, so users should confirm the relevant reporting period.
Why the metric matters
PriceToWorth generally treats 100% or more as stronger cash conversion, 70%–99.9% as intermediate and below 70% as weaker, subject to company and sector context.
Interpretation and limitations
Working-capital timing, large investment programs, asset sales, acquisitions and one-time items can make a single period unrepresentative. Negative net income can also make the ratio not meaningful.
How to use it on PriceToWorth
Examine several periods and reconcile operating cash flow, capital expenditure and net income. Compare with peers that have similar capital intensity and use the result alongside Beneish, Piotroski, debt and profitability indicators.
Research checklist
- Check the reporting period and whether the value is trailing, annualized or forward-looking.
- Compare the company with suitable industry peers and its own history.
- Investigate sudden changes and corporate actions.
- Read the latest company filing before relying on a material figure.
- Treat a dash, Not available or NM as unavailable—not as zero.
