Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the quarter after a negative prior quarter, driven by improved operating cash flow, while the free cash flow margin was lower than the same quarter last year. The company's filing indicated no material changes in risk factors or rate regulatory proceedings, and it continues to rely on internal cash flows and external financing.
- Revenue increased from the prior quarter, and operating cash flow grew more than proportionally, resulting in a positive free cash flow. Capital expenditure declined sequentially, further supporting the conversion.
- Compared to the prior quarter, free cash flow improved significantly from negative to positive. Relative to the same quarter last year, free cash flow and margin were substantially lower, as operating cash flow was much higher in the year-ago period.
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
$100.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$746.6M
Cash generated by operations before capital spending.
CapEx
$645.9M
Capital spending and related asset purchases.
FCF margin
6.1%
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 | $662.7M | $328.8M | $668.1M | -$339.3M | -51.2% |
| 2023-09-30 | $587.6M | $238.2M | $722.5M | -$484.3M | -82.4% |
| 2023-12-31 | $1.2B | $245.3M | $769.6M | -$524.4M | -45.3% |
| 2024-03-31 | $1.6B | $746.6M | $645.9M | $100.7M | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.2% | 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 Volatility
Operating cash flow rose sharply from the preceding quarter, enabling the company to generate positive free cash flow after a period of negative free cash flow. However, operating cash flow was markedly lower than the same quarter one year earlier.
The improvement in operating cash flow was the primary factor behind the swing to positive free cash flow, but the year-over-year comparison highlights variability.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow grew more than proportionally, resulting in a positive free cash flow. Capital expenditure declined sequentially, further supporting the conversion.
Compared to the prior quarter, free cash flow improved significantly from negative to positive. Relative to the same quarter last year, free cash flow and margin were substantially lower, as operating cash flow was much higher in the year-ago period.
Monitor the sustainability of the positive free cash flow margin given the large year-over-year decline in operating cash flow.