Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened from the preceding quarter but improved from the same quarter a year earlier. Revenue remained stable, while operating cash flow declined significantly, leading to negative free cash flow.
- Revenue was stable compared to the prior quarter, but operating cash flow was lower and capital expenditure was higher, resulting in negative free cash flow and a negative free cash flow margin.
- Compared with the immediately preceding quarter, operating cash flow was lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, operating cash flow improved from negative, capital expenditure was similar, and free cash flow was less negative.
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
-$21.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$244.0M
Cash generated by operations before capital spending.
CapEx
$265.0M
Capital spending and related asset purchases.
FCF margin
-0.4%
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 | $5.2B | $535.0M | $222.0M | $313.0M | 6.0% |
| 2023-09-30 | $5.1B | $746.0M | $212.0M | $534.0M | 10.4% |
| 2023-12-31 | $4.9B | $624.0M | $203.0M | $421.0M | 8.6% |
| 2024-03-31 | $4.9B | $244.0M | $265.0M | -$21.0M | -0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 Decline
Operating cash flow dropped substantially from the prior quarter, while capital expenditure increased, reversing the positive free cash flow of the prior period.
The combination resulted in a negative free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow was lower and capital expenditure was higher, resulting in negative free cash flow and a negative free cash flow margin.
Compared with the immediately preceding quarter, operating cash flow was lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, operating cash flow improved from negative, capital expenditure was similar, and free cash flow was less negative.
Monitor operating cash flow, which declined sharply from the preceding quarter.