Thomson Reuters Corporation (TRI) Cash Flow Statement

The ratio spread indicates that reported net income is not a reliable quarterly proxy for cash generation, as sub-1.0x quarters such as 2024Q2 and 2024Q4 coincide with large non-operating earnings swings. The ratio appears heavily influenced by working capital timing rather than structural accrual build-up. Investors should monitor whether the 2026 quarters, where OCF/NI averaged well above 1.0x, reflect durable collections performance or favorable timing.

The wide margin range suggests FCF is driven more by working capital movements than by steady operating performance, which complicates run-rate valuation. Capex consumes a stable 7.5% to 9.6% of revenue, so the swings are not coming from investment intensity. Investors should focus on trailing multi-quarter FCF rather than any single quarter when assessing cash earnings power.

Large positive and negative working capital swings alternate in a pattern that suggests billing and collection timing rather than structural deterioration. The reported data does not isolate receivables from deferred revenue, so the specific source of each swing remains unclear. Investors should examine the receivables and deferred revenue balances directly before drawing conclusions about collection efficiency.

Distributions appear funded from cash generation in most periods, though the 2025Q3 and 2026Q2 buybacks of roughly $673M and $685M respectively were large relative to quarterly FCF. Acquisition outflows were modest in most quarters but reached $604M in 2025Q1, suggesting episodic rather than continuous M&A spending. Investors should monitor whether buyback pace is sustainable if FCF normalizes toward lower quarterly levels.