Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than both the prior quarter and the same quarter last year. The free cash flow margin weakened compared to the prior quarter but improved versus the year-ago quarter.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that reflects efficient cash conversion relative to revenue.
- Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were also higher, but the free cash flow margin was lower. Compared to the same quarter last year, all metrics were higher and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$922.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$939.8M
Cash generated by operations before capital spending.
CapEx
$17.8M
Capital spending and related asset purchases.
FCF margin
25.0%
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 | $2.8B | $1.7B | $60.7M | $1.7B | 59.2% |
| 2023-09-30 | $2.5B | $1.1B | $62.7M | $1.0B | 40.1% |
| 2023-12-31 | $1.3B | $895.7M | $31.3M | $864.4M | 67.3% |
| 2024-03-31 | $3.7B | $939.8M | $17.8M | $922.1M | 25.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth Supporting Cash Flow
Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow followed a similar upward trajectory. This provided the foundation for the increase in free cash flow.
Higher revenue contributed to stronger absolute free cash flow despite a lower margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that reflects efficient cash conversion relative to revenue.
Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were also higher, but the free cash flow margin was lower. Compared to the same quarter last year, all metrics were higher and the free cash flow margin improved.
Monitor the relationship between revenue and operating cash flow in future quarters to assess the sustainability of cash conversion efficiency.