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.

Valero Energy VLO Free cash flow margin

Discontinued — last reported Q2 '19

Free cash flow margin at other companies

Marathon PetroleumMPC

4.2%+1.0pp

PBF EnergyPBF

-3.2%—

HF SinclairDINO

3.6%-4.2pp

Devon EnergyDVN

17.7%-0.9pp

MPLXMPLX

30.2%-9.4pp

Icahn EnterprisesIEP

——

Other financials

Income statement

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Revenue$32.4B+7.0%

Gross profit$2.1B+305%

Operating income$1.7B+292%

Net income$1.3B+312%

EPS (diluted)$4.22+322%

Balance sheet

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Cash & equivalents$5.7B+23.7%

Total debt$11.5B+5.9%

Total equity$23.9B+1.6%

Total assets$62.1B+5.0%

Cash flow

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Operating cash flow$1.4B+46.0%

CapEx$409.0M-4.7%

Free cash flow$1.5B+70.0%

Valuation

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Market cap$70.17B+77.9%

Enterprise value$75.92B+66.7%

P/E16.7×-25.7×

P/S0.6×+0.3×

Profitability

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Gross margin5.6%+3.0pp

Operating margin4.7%+3.7pp

Net margin3.4%+2.6pp

Returns & leverage

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Return on equity17.8%+14.0pp

Debt / equity0.5×0.0×

Current ratio1.6×0.0×

Where this comes from

Calculated from Valero Energy’s reported figures.

free cash flow/total revenue=3.5%

Based on trailing twelve months.

The official record: Valero Energy’s 10-Q, filed August 6, 2019, 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.