![]() ![]() The beauty of strong free cash flow generation is that it provides a company with capital allocation options, including dividends and share repurchases. Interestingly, it reported that it gained $9 billion in market share in 2020. Further, in 2020, Target grew its digital sales by almost $10 billion thanks to a 235% increase in same-day services. It helps to make these kinds of payouts when you're generating record amounts of free cash flow.Īs the company reported in March, its $15 billion in 2020 sales growth was greater than its growth for the previous 11 years combined. ![]() In 2020, Target doled out approximately $1 billion in bonuses, benefits and health and safety equipment required to keep its staff safe. "Instead, it handed out five rounds of bonuses to rank-and-file employees as they adjusted to changing conditions and adopted new ways to work." "Target did not lay off, furlough or reduce compensation of its store employees through the year," says Patrick Kennedy, Star Tribune business reporter. Not only did Target survive, but it also thrived. Few chiefs are worth such a massive pay package, but many long-term TGT shareholders would likely agree Cornell is one of them.Īs the Star Tribune reported in late April, Cornell did a tremendous job leading the retailer through the pandemic. Target ( TGT, $225.09) CEO Brian Cornell received $77.5 million in annual compensation for his work in 2020. Free cash flow – trailing twelve months (TTM): $8.0 billion.The annual cost of stock based compensation. Negative values mean the company spent more money buying back stock than it collected from any sales during the period. For example, a company with a small Payout Ratio has room to increase its dividend. Dividend Payout ratio can be used to measure the chance of a dividend increase or cut. Payout Ratioĭividend payout ratio is Dividend Per Share as a percent of Diluted Earnings Per Share based on the TTM from the most recent quarterly report. Warren Buffett values this measurement and defines it as net income plus depreciation and amortization less capital expenditure and change in working capital. Owner Earnings is cash flow available to shareholders, a measure of how much money the company generates for its owners. The measure of cash into or out of the company over the trailing twelve month period, similar to Net Income but less easily manipulated and without the affects of depreciation and other non-cash charges. Greenwald multiplies the long term Gross PPE to Sales ratio by the current year’s increase in sales and subtract that from Cap Ex. We use Bruce Greenwald’s method to determine this depreciation. Maintenance Capital Expenditure is an attempt to isolate the ongoing cost portion of cap ex and exclude the growth cap ex that is an investment in future sales. The gains (or losses) from investments in financial markets and spending on capital assets such as plant and equipment. The trailing 12 month free Cash Flow expenditures as a percent of sales. The trailing 12 month free Cash Flow as a percent of net income. Note that the Forward Dividend Yield is used along with the TTM Free Cash Flow. It is calculated as Dividend Per Share as a percent of Free Cash Flow per Share and values less than 70 are considered best. This alternative dividend payout ratio aims to be more accurate by excluding accounting earnings and including only actual cash generation. Free Cash Flow Payout Ratio (Premium Plus) It is calculated by subtracting Capital Expenditure (Cap Ex) from Cash Flow and is for the trailing twelve month period. Free Cash Flowįree Cash Flow shows how much cash a company generates after paying to maintain and expand its production. Financing activities include the sale or purchase of stock, the issuance or payment of debt, and the payment of dividends. The net cash provided by (positive) or used for (negative) financing activities. The cost of payments made by this company to its common shareholders, preferred shareholders, and Noncontrolling interests over the trailing twelve month period. The dividend coverage ratio is calculated by dividing the stock’s annual earnings per share by the annual dividend. The trailing 12 month capital expenditures as a percent of sales. It is calculated using the trailing twelve month period. Free Cash Flow Payout Ratio (Premium Plus)Ĭapital expenditure, or capex is the price of upgrading or buying existing or new long-lived assets. ![]()
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