Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. Cash conversion strengthened as operating cash flow grew faster than capital expenditure.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose to a level higher than either comparative period. Capital expenditure also increased but remained proportionally smaller relative to operating cash flow, resulting in higher free cash flow and an improved margin.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow increasing and capital expenditure also rising. Versus the same quarter one year earlier, free cash flow and margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$439.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$593.0M
Cash generated by operations before capital spending.
CapEx
$154.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-29 | $5.8B | $593.0M | $154.0M | $439.0M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.4B | 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 Growth
Operating cash flow was higher compared to both the prior quarter and the year-ago quarter, while capital expenditure increased at a slower pace. This combination drove free cash flow and margin higher.
Free cash flow and margin improved sequentially and year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose to a level higher than either comparative period. Capital expenditure also increased but remained proportionally smaller relative to operating cash flow, resulting in higher free cash flow and an improved margin.
Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow increasing and capital expenditure also rising. Versus the same quarter one year earlier, free cash flow and margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow to see if the current conversion efficiency persists.