Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all rose versus both the prior quarter and the same quarter a year ago, and the free cash flow margin improved. Cash conversion strengthened as operating cash flow grew more than proportionally compared to revenue, while capital expenditure remained moderate.
- Operating cash flow increased significantly relative to the rise in revenue, and free cash flow expanded further after capital expenditure. As a result, the free cash flow margin was higher than in either the previous or the year-ago quarter, reflecting a greater proportion of revenue converting into free cash flow.
- Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, every metric also showed improvement, with operating cash flow and free cash flow rising more sharply than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$208.0M
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $5.5B | $521.0M | $142.0M | $379.0M | 6.9% |
| 2024-06-29 | $5.8B | $593.0M | $154.0M | $439.0M | 7.5% |
| 2024-09-28 | $6.8B | $628.0M | $132.0M | $496.0M | 7.3% |
| 2024-12-28 | $7.7B | $1.3B | $208.0M | $1.1B | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 226.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow rose more than revenue in both comparisons, which drove the improvement in free cash flow and the margin. The filing notes that operating activities provided higher net cash compared to the prior year, without specifying the causes.
The higher operating cash flow was the primary factor behind the elevated free cash flow and improved margin in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased significantly relative to the rise in revenue, and free cash flow expanded further after capital expenditure. As a result, the free cash flow margin was higher than in either the previous or the year-ago quarter, reflecting a greater proportion of revenue converting into free cash flow.
Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, every metric also showed improvement, with operating cash flow and free cash flow rising more sharply than revenue.
Capital expenditure increased sequentially and year-over-year, and the proportion of domestic cash holdings shifted higher, as noted in the filing; both items warrant monitoring for their effect on cash generation and liquidity.