Understand cash generation quality and how management allocates capital.
Free cash flow was $493.31M in the latest quarter (65.3% increase YoY). FCF margin is 9.7%. Shares outstanding increased by 2.1% year-over-year, indicating dilution (potentially from stock compensation or capital raises). Free cash flow is the lifeblood of a business — it funds dividends, buybacks, debt reduction, and reinvestment without relying on external capital.
Free cash flow, earnings quality, and capital allocation