Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were both stable compared to the same quarter one year earlier. Operating cash flow decreased slightly versus the prior quarter and the year-ago quarter, while capital expenditure was higher than the year-ago level.
- Operating cash flow represented about one-third of revenue, yielding a free cash flow margin above thirty percent. Capital expenditure consumed less than one-twentieth of operating cash flow, allowing most operating cash to convert into free cash flow.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while free cash flow and its margin also declined modestly. Versus the same quarter one year earlier, revenue was slightly higher and capital expenditure increased, but operating cash flow, free cash flow, and the free cash flow margin were each slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$193.0M
Capital spending and related asset purchases.
FCF margin
31.3%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-06-30 | $13.9B | $6.3B | $178.0M | $6.1B | 44.3% |
| 2023-09-30 | $13.9B | $7.6B | $219.0M | $7.4B | 52.8% |
| 2023-12-31 | $14.3B | $4.8B | $205.0M | $4.5B | 31.8% |
| 2024-03-31 | $12.3B | $4.0B | $193.0M | $3.8B | 31.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 281.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Drivers
The filing indicates that the decrease in operating cash flow versus the prior year was primarily due to ImmunoGen acquisition-related cash expenses, changes in product mix, and increased R&D funding, partially offset by working capital timing. No further causal detail is available for the sequential decline.
These factors collectively offset revenue stability and reduced cash conversion efficiency in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented about one-third of revenue, yielding a free cash flow margin above thirty percent. Capital expenditure consumed less than one-twentieth of operating cash flow, allowing most operating cash to convert into free cash flow.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while free cash flow and its margin also declined modestly. Versus the same quarter one year earlier, revenue was slightly higher and capital expenditure increased, but operating cash flow, free cash flow, and the free cash flow margin were each slightly lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined sequentially and year-over-year despite stable revenue.