Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin declined sharply from both the prior quarter and the year-ago quarter, despite higher revenue. The decrease was driven by lower operating cash flow.
- The company converted a smaller share of revenue into free cash flow, as operating cash flow declined more than revenue increased.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, and operating cash flow was lower despite higher revenue. Versus the same quarter last year, free cash flow and margin also declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
21.9%
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 |
|---|---|---|---|---|---|
| 2023-06-02 | $4.8B | $2.1B | $121.0M | $2.0B | 41.9% |
| 2023-09-01 | $4.9B | $1.9B | $91.0M | $1.8B | 36.4% |
| 2023-12-01 | $5.0B | $1.6B | $47.0M | $1.6B | 30.7% |
| 2024-03-01 | $5.2B | $1.2B | $37.0M | $1.1B | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $4.1B | 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 Decline
Operating cash flow decreased substantially while revenue grew, leading to a lower free cash flow margin.
This suggests a shift in cash conversion efficiency that will require further observation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a smaller share of revenue into free cash flow, as operating cash flow declined more than revenue increased.
Compared to the immediately preceding quarter, free cash flow and margin were lower, and operating cash flow was lower despite higher revenue. Versus the same quarter last year, free cash flow and margin also declined.
Monitor the trend in working capital, which declined significantly from the prior quarter.