Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin declined from the prior quarter and the same quarter last year, as revenue was slightly lower, operating cash flow decreased, and capital expenditure increased. Cash conversion weakened during the period.
- Revenue was lower than the prior quarter, while operating cash flow decreased more sharply, and capital expenditure rose, resulting in a free cash flow that was lower than both the immediately preceding quarter and the year-ago quarter. The free cash flow margin narrowed accordingly.
- Compared to the previous quarter, revenue was slightly lower, operating cash flow was lower, and capital expenditure was higher, leading to a lower free cash flow and margin. Versus the same quarter one year ago, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$550.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$838.0M
Capital spending and related asset purchases.
FCF margin
15.5%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $3.7B | $1.1B | $517.0M | $549.0M | 14.9% |
| 2024-06-30 | $3.7B | $1.1B | $549.0M | $558.0M | 15.1% |
| 2024-09-30 | $3.6B | $1.7B | $625.0M | $1.1B | 29.3% |
| 2024-12-31 | $3.5B | $1.4B | $838.0M | $550.0M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.7% | 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.
Cash conversion pressure
Free cash flow margin decreased compared to both the prior quarter and the year-ago quarter, as operating cash flow was lower while capital expenditure was higher. The company, a rail-based freight transportation provider, experienced a combination of reduced cash generation from operations and increased investment spending.
This combination weakened the cash conversion efficiency for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, while operating cash flow decreased more sharply, and capital expenditure rose, resulting in a free cash flow that was lower than both the immediately preceding quarter and the year-ago quarter. The free cash flow margin narrowed accordingly.
Compared to the previous quarter, revenue was slightly lower, operating cash flow was lower, and capital expenditure was higher, leading to a lower free cash flow and margin. Versus the same quarter one year ago, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
Capital expenditure increased relative to both the prior quarter and the same quarter last year, a trend that may warrant monitoring.