What does free cash flow margin mean?

Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

Balchem BCPC Free cash flow margin

Discontinued — last reported Q2 '19

Free cash flow margin at other companies

Archer Daniels MidlandADM

4.1%—

WestlakeWLK

-4.6%-5.3pp

Darling Ingredients Inc.DAR

11.1%+2.2pp

HWK

HawkinsHWKN

7.9%+0.8pp

International Flavors & FragrancesIFF

3.7%-1.3pp

Perimeter SolutionsPRM

15.7%-19.7pp

Other financials

Income statement

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Revenue$270.7M+8.1%

Gross profit$101.1M+14.6%

Operating income$55.6M+9.0%

Net income$40.3M+8.7%

EPS (diluted)$1.25+10.6%

Balance sheet

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Cash & equivalents$72.9M+46.0%

Total debt$37.4M-1.7%

Total equity$1.3B+6.3%

Total assets$1.7B+4.7%

Cash flow

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Operating cash flow$40.1M+9.9%

Valuation

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Market cap$5.33B+0.5%

Profitability

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Gross margin36.3%+0.7pp

Operating margin20.2%+0.3pp

Net margin15%+0.8pp

Returns & leverage

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Return on equity12.7%+0.7pp

Debt / equity0×0.0×

Current ratio2.5×+0.1×

Where this comes from

Calculated from Balchem’s reported figures.

free cash flow/total revenue=14.9%

Based on trailing twelve months.

The official record: Balchem’s 10-Q, filed July 31, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.