Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher operating cash flow. However, free cash flow and margin weakened relative to the immediately preceding quarter.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly year over year, while capital expenditure rose modestly, resulting in a higher free cash flow and margin compared to the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, all metrics improved, with free cash flow margin showing a notable increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$451.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$784.0M
Cash generated by operations before capital spending.
CapEx
$333.0M
Capital spending and related asset purchases.
FCF margin
7.0%
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 | $6.3B | $859.0M | $277.0M | $582.0M | 9.2% |
| 2023-09-30 | $6.6B | $810.0M | $281.0M | $529.0M | 8.0% |
| 2023-12-31 | $6.8B | $932.0M | $356.0M | $576.0M | 8.4% |
| 2024-03-31 | $6.4B | $784.0M | $333.0M | $451.0M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 growth
Operating cash flow was substantially higher than the same quarter last year, which was the primary factor behind the improvement in free cash flow and margin on a year-over-year basis.
This driver supported a stronger cash conversion from revenue compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly year over year, while capital expenditure rose modestly, resulting in a higher free cash flow and margin compared to the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, all metrics improved, with free cash flow margin showing a notable increase.
Monitor the level of capital expenditure relative to operating cash flow, as it remained stable sequentially but increased year over year.