Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin declined compared to both the prior quarter and the year-ago quarter. Revenue was higher than the prior quarter but lower than the year-ago period.
- Operating cash flow after capital expenditure yielded free cash flow, resulting in a margin that was lower than in the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were lower, and capital expenditure was higher. Relative to the same quarter a year ago, revenue, operating cash flow, and free cash flow were lower, while capital expenditure was higher and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$524.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$564.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$489.0M
Capital spending and related asset purchases.
FCF margin
4.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $13.4B | $994.0M | $236.0M | $758.0M | 5.6% |
| 2024-06-30 | -$5.7B | -$1.5B | $297.0M | -$1.8B | 30.9% |
| 2024-09-30 | $3.9B | $1.3B | $354.0M | $973.0M | 25.1% |
| 2024-12-31 | $13.5B | $1.1B | $489.0M | $564.0M | 4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Decline in Cash Conversion Efficiency
Revenue increased from the prior quarter but operating cash flow decreased, leading to a significant drop in free cash flow margin. This pattern indicates a weaker conversion of revenue into cash.
If this trend continues, the company may have less internal cash generation to fund operations or reduce debt.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow after capital expenditure yielded free cash flow, resulting in a margin that was lower than in the prior quarter and the year-ago quarter.
Compared to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were lower, and capital expenditure was higher. Relative to the same quarter a year ago, revenue, operating cash flow, and free cash flow were lower, while capital expenditure was higher and margin weakened.
The company's credit rating and the effectiveness of its hedging strategies, as discussed in the filing, are key items to monitor given their impact on liquidity and borrowing costs.