Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially, driven by a lower capital expenditure, despite a modest decline in operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin were lower, reflecting a reduced revenue and operating cash flow.
- Operating cash flow as a percentage of revenue was lower than the year-ago quarter but higher than the prior quarter. After capital expenditure, free cash flow margin improved from the prior quarter but remained below the year-ago level.
- Compared to the prior quarter, revenue and operating cash flow were lower, but capital expenditure was lower, leading to an improvement in free cash flow. Compared to the same quarter last year, all metrics were lower, with free cash flow and margin seeing the largest declines.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$347.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$445.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
23.6%
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 | $1.8B | $712.0M | $95.0M | $617.0M | 34.8% |
| 2023-09-30 | $1.3B | $618.0M | $147.0M | $471.0M | 37.0% |
| 2023-12-31 | $1.6B | $480.0M | $188.0M | $292.0M | 18.6% |
| 2024-03-31 | $1.5B | $445.0M | $98.0M | $347.0M | 23.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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.
Lower Capital Expenditure
Capital expenditure decreased from the prior quarter, which had been elevated, and was higher than the year-ago quarter. This reduction was the primary factor behind the sequential increase in free cash flow.
The lower capital expenditure allowed free cash flow to improve sequentially despite a decline in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than the year-ago quarter but higher than the prior quarter. After capital expenditure, free cash flow margin improved from the prior quarter but remained below the year-ago level.
Compared to the prior quarter, revenue and operating cash flow were lower, but capital expenditure was lower, leading to an improvement in free cash flow. Compared to the same quarter last year, all metrics were lower, with free cash flow and margin seeing the largest declines.
Monitor capital expenditure levels, which varied sharply between periods, and the risk factors highlighted in the filing, including the cyclical nature of the business and natural gas price volatility.