Unity Biotechnology (Unity Biotechnology) Free Cash Flow

: $-37.09 Mil (TTM As of Dec. 2023)

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Unity Biotechnology's total free cash flow for the months ended in Dec. 2023 was $-7.58 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2023 was $-37.09 Mil.

Unity Biotechnology's Free Cash Flow per Share for the months ended in Dec. 2023 was $-0.48. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2023 was $-2.53.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was 45.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 33.90% 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 8 years, Unity Biotechnology's highest 3-Year average Free Cash Flow per Share Growth Rate was 48.90% per year. The lowest was 26.60% per year. And the median was 32.10% per year.

Unity Biotechnology Free Cash Flow Historical Data

The historical data trend for Unity Biotechnology'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.

Unity Biotechnology Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Free Cash Flow

-74.01

-78.98

-45.26

-52.51

-37.10

Unity Biotechnology 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																-11.75	-11.32	-11.08	-7.11	-7.58

Unity Biotechnology 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.

Unity Biotechnology'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
	=	-37.088	+	-0.011
	=	-37.10

Unity Biotechnology'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
	=	-7.575	+	0
	=	-7.58

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 $-37.09 Mil.

Unity Biotechnology (NAS:UBX) 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, Unity Biotechnology's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0	/	1.93	+	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.

Unity Biotechnology Free Cash Flow Related Terms

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

Unity Biotechnology (Unity Biotechnology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Unity Biotechnology Inc (NAS:UBX) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

9U90:Germany 9U90:Germany

Address

285 East Grand Avenue, South San Francisco, CA, USA, 94080

Website

https://www.unitybiotechnology.com

Unity Biotechnology Inc designs therapeutics that prevent, halt, and reverse various diseases of aging. The company focuses on clearing senescent cells, and creating senolytic medicines. Its medicines target vulnerabilities unique to senescent cells to clear those cells from the human body while leaving normal cells unaffected. The firm focuses on age-associated diseases such as osteoarthritis, eye diseases, and pulmonary diseases.

Executives

Anirvan Ghosh	director, officer: Chief Executive Officer	C/O UNITY BIOTECHNOLOGY, INC., 285 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Jamie Dananberg	officer: Chief Medical Officer	3280 BAYSHORE BOULEVARD, BRISBANE CA 94005
Michael P. Samar	director	C/O ASSEMBLY BIOSCIENCES, INC., 11711 N. MERIDIAN ST. SUITE 310, CARMEL IN 46032
Alexander Hieu Nguyen	officer: See Remarks	C/O UNITY BIOTECHNOLOGY, INC., 285 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Nathaniel E David	director, officer: President	C/O KYTHERA BIOPHARMACEUTICALS, INC., 27200 WEST AGOURA ROAD, SUITE 200, CALABASAS CA 91301
Gilmore Neil O'neill	director	215 FIRST STREET, CAMBRIDGE MA 02142
Alexander Azoy	officer: See Remarks	30699 RUSSELL RANCH ROAD, SUITE 140, WESTLAKE VILLAGE CA 91362
Lynne Marie Sullivan	officer: See Remarks	C/O SOLID BIOSCIENCES, LLC, 141 PORTLAND STREET, FIFTH FLOOR, CAMBRIDGE MA 02139
Robert Nelsen	director	8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Graham K Cooper	director	C/O RECEPTOS, INC., 10835 ROAD TO THE CURE, SUITE 205, SAN DIEGO CA 92121
Paul L Berns	director	11080 CIRCLEPOINT RD., STE, 200, WESTMINSTER CO 80020
Camille D Samuels	director	2463 JACKSON ST., SAN FRANCISCO CA 94115
Kristina Burow	director	8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
David L. Lacey	director	3280 BAYSHORE BOULEVARD, BRISBANE CA 94005
Dan Marquess	officer: Chief Scientific Officer	3280 BAYSHORE BOULEVARD, BRISBANE CA 94005