Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply versus the prior quarter, with free cash flow margin rising from a low level. Compared to the same quarter last year, free cash flow and margin also increased.
- Revenue increased while operating cash flow rose substantially, leading to higher free cash flow and a stronger free cash flow margin. Capital expenditure was lower than the prior quarter but slightly higher than a year ago.
- Compared to the immediately preceding quarter, free cash flow and margin were significantly higher, driven by a large increase in operating cash flow and a reduction in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow higher and capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$436.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$569.2M
Cash generated by operations before capital spending.
CapEx
$132.7M
Capital spending and related asset purchases.
FCF margin
16.2%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $2.5B | $582.5M | $137.2M | $445.3M | 17.7% |
| 2023-09-30 | $2.5B | $480.5M | $131.2M | $349.3M | 14.1% |
| 2023-12-31 | $2.5B | $265.5M | $171.9M | $93.5M | 3.7% |
| 2024-03-31 | $2.7B | $569.2M | $132.7M | $436.5M | 16.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 Strength
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow.
Higher operating cash flow drove a significant improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose substantially, leading to higher free cash flow and a stronger free cash flow margin. Capital expenditure was lower than the prior quarter but slightly higher than a year ago.
Compared to the immediately preceding quarter, free cash flow and margin were significantly higher, driven by a large increase in operating cash flow and a reduction in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow higher and capital expenditure slightly higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences free cash flow margin.