Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to the prior quarter but increased year-over-year. Free cash flow improved sequentially and from the same quarter one year earlier, supported by higher operating cash flow.
- Operating cash flow as a proportion of revenue improved both sequentially and year-over-year, leading to a stronger free cash flow margin despite a modest rise in capital expenditure.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, resulting in improved free cash flow and margin. Relative to the same quarter last year, revenue was slightly higher and operating cash flow improved, yielding a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$379.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$521.0M
Cash generated by operations before capital spending.
CapEx
$142.0M
Capital spending and related asset purchases.
FCF margin
6.9%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $5.4B | $379.0M | $125.0M | $254.0M | 4.7% |
| 2023-09-30 | $5.8B | $421.0M | $124.0M | $297.0M | 5.1% |
| 2023-12-30 | $6.2B | $381.0M | $139.0M | $242.0M | 3.9% |
| 2024-03-30 | $5.5B | $521.0M | $142.0M | $379.0M | 6.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 308.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow increased both sequentially and year-over-year, which was the strongest observable factor behind the improvement in free cash flow.
This drove free cash flow higher even as revenue declined sequentially, showing a favorable cash conversion pattern.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved both sequentially and year-over-year, leading to a stronger free cash flow margin despite a modest rise in capital expenditure.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, resulting in improved free cash flow and margin. Relative to the same quarter last year, revenue was slightly higher and operating cash flow improved, yielding a higher free cash flow margin.
Monitor the trend in operating cash flow relative to revenue, as it remains the primary driver of free cash flow changes.