Free cash flow growth %

Free cash flow growth is a financial metric that measures the percentage change in free cash flow over specific time periods. Free cash flow represents the cash generated by a company from its operations after deducting capital expenditures necessary to maintain or expand its asset base.

The value of the metric for different time periods is calculated as follows:

• Annual YoY (Year-over-Year): Compares free cash flow between the two most recent years, for example, 2023 and 2022.
• Quarterly YoY: Compares free cash flow for the most recent quarter (e.g., Q2 2024) with the same quarter in the previous year (Q2 2023).
• TTM YoY (Trailing Twelve Months Year-over-Year): Compares free cash flow for the last known TTM period ending, for example, in Q2 2024 with the TTM period ending in Q2-2023.
• Quarterly QoQ (Quarter-over-Quarter): Compares free cash flow between the two most recent quarters (e.g., Q2 2024 and Q1 2024), to assess the QoQ change in free cash flow.

Free cash flow growth helps evaluate the company's ability to generate excess cash after covering operating expenses and capital investments. This metric can indicate the company's financial health and its capacity to generate cash for potential investments, debt repayment, or shareholder returns. Positive growth indicates an increase in free cash flow, while negative growth suggests a decline in free cash flow compared to the previous period.