Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter a year earlier. Free cash flow improved sequentially but weakened compared to the prior year, with a mixed margin trend.
- Revenue was higher, operating cash flow rose, and capital expenditure decreased relative to the prior quarter, yielding a higher free cash flow and an improved margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, capital expenditure was higher, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$434.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$669.5M
Cash generated by operations before capital spending.
CapEx
$235.1M
Capital spending and related asset purchases.
FCF margin
10.3%
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 |
|---|---|---|---|---|---|
| 2023-05-06 | $4.1B | $724.7M | $171.2M | $553.5M | 13.5% |
| 2023-11-18 | $4.2B | $830.3M | $235.4M | $594.8M | 14.2% |
| 2024-02-10 | $3.9B | $434.1M | $255.4M | $178.7M | 4.6% |
| 2024-05-04 | $4.2B | $669.5M | $235.1M | $434.4M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 recovery
Operating cash flow was higher than the prior quarter, leading to a substantial improvement in free cash flow and margin. This strengthened the company's primary liquidity source as described in the filing.
The stronger cash generation supports the company's liquidity and capital allocation capacity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, operating cash flow rose, and capital expenditure decreased relative to the prior quarter, yielding a higher free cash flow and an improved margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, capital expenditure was higher, and margin weakened.
Monitor the company's ability to sustain operating cash flow given the risk of decreased demand, as noted in the filing.