Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened significantly compared to both prior quarter and year-ago quarter, driven by lower operating cash flow. Revenue remained stable.
- Operating cash flow conversion to free cash flow declined as capital expenditures remained substantial, though lower than the prior quarter.
- Sequentially and year-over-year, free cash flow and margin decreased due to lower operating cash flow, despite a sequential reduction in capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$549.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$517.0M
Capital spending and related asset purchases.
FCF margin
14.9%
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 | $3.7B | $1.2B | $565.0M | $652.0M | 17.6% |
| 2023-09-30 | $3.6B | $1.6B | $574.0M | $978.0M | 27.4% |
| 2023-12-31 | $3.7B | $1.5B | $686.0M | $803.0M | 21.8% |
| 2024-03-31 | $3.7B | $1.1B | $517.0M | $549.0M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.0% | 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.
Tax Payments and Lower Earnings
Lower net earnings and a one-time tax payment of previously deferred federal taxes reduced operating cash flow, as noted in the filing.
They were the primary factors depressing free cash flow in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow conversion to free cash flow declined as capital expenditures remained substantial, though lower than the prior quarter.
Sequentially and year-over-year, free cash flow and margin decreased due to lower operating cash flow, despite a sequential reduction in capital spending.
Monitor capital expenditure trends and the impact of tax payments on operating cash flow in upcoming quarters.