What does free cash flow margin mean?

How much real, spendable cash each sales dollar generates after reinvestment.

How do you interpret free cash flow margin?

A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.

How does free cash flow margin compare across companies?

Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.

ACRES Commercial Realty ACR Free cash flow margin

Discontinued — last reported Q4 '17

Free cash flow margin at other companies

Starwood Property TrustSTWD

25.8%—

TPG RE Finance Trust, Inc.TRTX

32.1%0.0pp

Ladder CapitalLADR

95%—

EFC

Ellington Financial Inc.EFC

-115.6%+364pp

Realty IncomeO

66.7%+2.7pp

Chicago Atlantic Real Estate FinanceREFI

20.5%—

Other financials

Income statement

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Revenue$17.8M+4.8%

Net income$7.5M+1,131%

EPS (diluted)-$0.16+80.0%

Balance sheet

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Cash & equivalents$48.0M-27.3%

Total debt$1.9B+46.7%

Total equity$420.6M-2.2%

Total assets$2.5B+39.7%

Cash flow

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Operating cash flow$913.0K+120%

Valuation

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Market cap$118.45M-14.7%

Enterprise value$1.94B+43.0%

P/E3.3×-2.8×

P/S1.5×-0.2×

Profitability

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Net margin44.9%+16.7pp

Returns & leverage

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Return on equity8.5%+3.2pp

Debt / equity4.4×+1.5×

Where this comes from

Calculated from ACRES Commercial Realty’s reported figures.

free cash flow/total revenue=377.7%

Based on trailing twelve months.

The official record: ACRES Commercial Realty’s 10-K, filed March 11, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?: A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?: Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.