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.

Sonos, Inc. SONO Free cash flow margin

Discontinued — last reported Q4 '16

Free cash flow margin at other companies

AppleAAPL

28.6%+4.0pp

GentexGNTX

17.7%+1.7pp

AmazonAMZN

1.4%-1.8pp

SoundHound AI, Inc.SOUN

-57.9%-17.9pp

Dolby Laboratories, Inc.DLB

22.1%-7.5pp

Alphabet Inc.GOOGL

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Other financials

Income statement

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Revenue$281.5M+8.4%

Gross profit$124.6M+9.7%

Operating income-$31.6M+48.4%

Net income-$28.9M+58.8%

EPS (diluted)-$0.24+58.6%

Balance sheet

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Cash & equivalents$96.5M-38.6%

Total debt$58.7M-6.9%

Total equity$384.4M+0.4%

Total assets$839.5M+6.0%

Cash flow

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Operating cash flow$163.3M+4.6%

CapEx$4.8M-14.0%

Free cash flow$157.3M+10.0%

Valuation

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Market cap$1.69B+64.5%

Enterprise value$1.65B+76.3%

P/E71.3×—

P/S1.2×+0.5×

Profitability

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Gross margin44.8%+0.4pp

Operating margin2.2%+1.3pp

Net margin1.6%+0.9pp

Returns & leverage

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Return on equity6.2%+3.6pp

Debt / equity0.2×0.0×

Current ratio1.6×0.0×

Where this comes from

Calculated from Sonos, Inc.’s reported figures.

free cash flow/total revenue=-1%

Based on trailing twelve months.

The official record: Sonos, Inc.’s 10-K, filed November 28, 2018, 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.