Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive in the quarter, supported by operating cash flow that exceeded capital expenditure. Revenue and free cash flow margin were lower compared to the same quarter last year.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected the proportion of revenue converted into free cash flow.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was slightly lower, capital expenditure was slightly lower, and free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$343.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$956.0M
Cash generated by operations before capital spending.
CapEx
$613.0M
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $1.5B | $665.0M | n/a | n/a | n/a |
| 2023-09-30 | $1.6B | $199.0M | n/a | n/a | n/a |
| 2023-12-31 | $1.9B | $405.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.1B | $956.0M | $613.0M | $343.0M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Decline
The free cash flow margin decreased compared to the same quarter last year, driven by a combination of lower revenue and a slightly larger relative decline in free cash flow.
The lower free cash flow margin indicates a reduced efficiency in converting revenue into free cash flow relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected the proportion of revenue converted into free cash flow.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was slightly lower, capital expenditure was slightly lower, and free cash flow and free cash flow margin were lower.
Monitor the trend in free cash flow margin, which weakened compared to the prior year quarter.