Inogen (Inogen) Free Cash Flow

: $-30.2 Mil (TTM As of Dec. 2023)

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Inogen's total free cash flow for the months ended in Dec. 2023 was $-9.5 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2023 was $-30.2 Mil.

Inogen's Free Cash Flow per Share for the months ended in Dec. 2023 was $-0.41. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.31.

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 13 years, Inogen's highest 3-Year average Free Cash Flow per Share Growth Rate was 59.00% per year. The lowest was -27.30% per year. And the median was 15.50% per year.

Inogen Free Cash Flow Historical Data

The historical data trend for Inogen'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.

Inogen Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Free Cash Flow

34.08

19.42

-0.43

-58.75

-30.25

Inogen Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Free Cash Flow																-22.61	-13.11	-4.58	-3.10	-9.45

Inogen 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.

Inogen's Free Cash Flow for the fiscal year that ended in Dec. 2023 is calculated as

Free Cash Flow (A: Dec. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-3.234	+	-27.011
	=	-30.2

Inogen's Free Cash Flow for the quarter that ended in Dec. 2023 is calculated as

Free Cash Flow (Q: Dec. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-3.148	+	-6.302
	=	-9.5

Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-30.2 Mil.

Inogen (NAS:INGN) 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 Dec23, Inogen's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	1.00742857	/	5.49	+	-0.2723
	=	-8.88 %

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.

Inogen Free Cash Flow Related Terms

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

Inogen (Inogen) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Inogen Inc (NAS:INGN) » Definitions » Free Cash Flow

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Traded in Other Exchanges

6IO:Germany

Address

301 Coromar Drive, Goleta, CA, USA, 93117

Website

https://www.inogen.com

Inogen Inc is a medical technology company that develops and manufactures portable oxygen concentrators used to deliver oxygen therapy to patients with chronic respiratory conditions. Its key product, the Inogen One system, is a lightweight alternative to traditional, stationary oxygen concentrator systems and oxygen tanks. The firm sells its products to home medical equipment providers and also rents products directly to patients. Internationally, Inogen sells its products through distributors or large gas companies and home oxygen providers. Inogen generates the majority of its revenue in the United States.

Executives

Thomas A. West	director	C/O INTERSECT, INC., 1555 ADAMS DRIVE, MENLO PARK CA 94025
Stanislav Glezer	officer: EVP, Chief Medical Officer	C/O INOGEN, INC., 326 BOLLAY DRIVE., GOLETA CA 93117
Jason Somer	officer: EVP, Gen. Counsel & Secretary	C/O INOGEN, INC., 301 COROMAR DRIVE, GOLETA CA 93117
Glenn S Boehnlein	director	2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Mary Kay Ladone	director	130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Kevin M King	director	C/O AFFYMETRIX, INC., 3420 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Kristin A. Caltrider	officer: EVP, CFO and Treasurer	C/O INOGEN, INC., 301 COROMAR DRIVE, GOLETA CA 93117
Anderson Ray Benjamin M	director	1100 NORTH WASHINGTON STREET, DELPHI IN 46923
Michael K. Sergesketter	officer: EVP, CFO and Treasurer	301 COROMAR DRIVE, GOLETA CA 93117
Raymond Huggenberger	director, officer: See Remarks	326 BOLLAY DRIVE, GOLETA CA 93117
Alison Bauerlein	officer: See Remarks	326 BOLLAY DRIVE, GOLETA CA 93117
Brenton Taylor	officer: Vice President, Engineering	326 BOLLAY DRIVE, GOLETA CA 93117
Elizabeth Mora	director	C/O MKS INSTRUMENTS, INC., 2 TECH DRIVE, SUITE 201, ANDOVER MA 01810
George J Parr	director	BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
Byron Myers	officer: Vice President, Marketing	326 BOLLAY DRIVE, GOLETA CA 93117