GDO (Western Asset Global Defined Opp) Free Cash Flow : $6.66 Mil (TTM As of Apr. 2024)

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What is Western Asset Global Defined Opp Free Cash Flow?

Western Asset Global Defined Opp's total free cash flow for the months ended in Apr. 2024 was $-2.45 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Apr. 2024 was $6.66 Mil.

Western Asset Global Defined Opp's Free Cash Flow per Share for the months ended in Apr. 2024 was $-0.16. Its free cash flow per share for the trailing twelve months (TTM) ended in Apr. 2024 was $0.44.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Western Asset Global Defined Opp was -85.20% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 54.40% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 33.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 7 years, Western Asset Global Defined Opp's highest 3-Year average Free Cash Flow per Share Growth Rate was 59.60% per year. The lowest was -22.10% per year. And the median was 33.05% per year.

Western Asset Global Defined Opp Free Cash Flow Historical Data

The historical data trend for Western Asset Global Defined Opp's Free Cash Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Western Asset Global Defined Opp Free Cash Flow Chart

Western Asset Global Defined Opp Annual Data

Trend

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Free Cash Flow

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7.49

9.03

16.30

30.33

33.23

Western Asset Global Defined Opp Semi-Annual Data
	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23	Apr24
Free Cash Flow	Get a 7-Day Free Trial									10.59	19.74	24.12	9.11	-2.45

Western Asset Global Defined Opp Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Western Asset Global Defined Opp's Free Cash Flow for the fiscal year that ended in Oct. 2023 is calculated as

Free Cash Flow (A: Oct. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	33.234	+	0
	=	33.23

Western Asset Global Defined Opp's Free Cash Flow for the quarter that ended in Apr. 2024 is calculated as

Free Cash Flow (Q: Apr. 2024 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-2.45	+	0
	=	-2.45

Free Cash Flow for the trailing twelve months (TTM) ended in Apr. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $6.66 Mil.

Western Asset Global Defined Opp (NYSE:GDO) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Oct23, Western Asset Global Defined Opp's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Oct23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0	/	11.36	+	0
	=	0.00 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Western Asset Global Defined Opp Free Cash Flow Related Terms

Thank you for viewing the detailed overview of Western Asset Global Defined Opp's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.

Western Asset Global Defined Opp Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Western Asset Global Corp Defined Opp (NYSE:GDO) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

N/A

Address

620 Eighth Avenue, 47th Floor, New York, NY, USA, 10018

Website

https://www.franklintempleton.com

Western Asset Global Corp Defined Opp is a closed-end management investment company with a primary investment objective to provide current income. Its secondary objective is to seek capital appreciation. The Fund invests in the United States and foreign corporate fixed-income securities of varying maturities.

Executives

Oliveira Marc De	officer: Secretary/Chief Legal Officer	C/O LEGG MASON & CO. LLC, ONE FIRST STAMFORD PLACE, STAMFORD CT 06902
Hoffmann Courtney A.	other: Secretary/GC Subadviser	WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Andrew J. Bowden	other: COO/Subadviser	WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Eileen A Kamerick	director	200 NORTH ADAMS STREET, GREEN BAY WI 54301
Laura F Fergerson	other: Manager/Investment Manager	3310 QUALITY DRIVE, 2ND FLOOR, RANCHO CORDOVA CA 95670
Brian Eakes	other: Manager/Investment Manager	100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
George P. Hoyt	officer: Secretary and Ch Lgl Officer	C/O FRANKLIN TEMPLETON, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Matthew Nicholls	other: Director of Sub-Adviser	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Jed A. Plafker	other: Director of Sub-Adviser	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Jennifer M Johnson	other: Director of Sub-Adviser	C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403-1906
Fred Steven Jensen	officer: Chief Compliance Officer	LEGG MASON, 620 EIGHTH AVENUE, 49TH FLOOR, NEW YORK NY 10018
Christopher Berarducci	officer: Treas/Principal Finan Officer	LEGG MASON, 620 EIGHTH AVENUE, NEW YORK NY 10018
Nisha Kumar	director	1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103
Jennifer S Berg	officer: Treasurer	100 INTERNATIONAL DRIVE, 7TH FLOOR, BALTIMORE MD 21202
Todd F Kuehl	officer: Chief Compliance Officer	1555 PEACHTREE STREET NE, ATLANTA GA 30309