The Long Term Average Free Cash Flow to Assets, or FCF LT / Assets, is a measure of how effectively a company generates surplus Cash Flow from Revenues. It is the Average Free Cash Flow over the last 5 years, divided by Total Assets. This is measured on a TTM basis.
Similar to the Gross Profits to Assets ratio, this attempts to measure how efficiently a company generates cash flow with its assets.
A high ratio is indicative of a high quality company that is able to generate a lot of excess cash for a given £1 of assets invested. Ultimately, this cash can be used to fund cash returns to shareholder’s or it can be used to invest in new growth opportunities.
We use this as part of the Quality Rank.
|Ticker||Name||FCF LT / Assets||StockRank™|
|NYQ:BPT||BP Prudhoe Bay Royalty Trust||2,157.29%||70|
|NYQ:PBT||Permian Basin Royalty Trust||809.58%||45|
|NYQ:SBR||Sabine Royalty Trust||577.71%||65|
|NYQ:SJT||San Juan Basin Royalty Trust||360.62%||71|
|NYQ:NRT||North European Oil Royalty Trust||314.45%||78|