Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow margin improved sequentially as operating cash flow increased and capital expenditure decreased, though revenue was lower. Compared to the same quarter last year, free cash flow and its margin were lower due to a decline in operating cash flow and a slight increase in capital expenditure.
- Revenue was lower than the preceding quarter, but operating cash flow was higher and capital expenditure was lower, resulting in higher free cash flow and an improved margin. The filing shows a decrease in trade accounts receivable and an increase in cash and equivalents compared to the end of the prior fiscal year.
- Sequentially, revenue was lower, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the margin improved. Year over year, revenue was slightly lower, operating cash flow was lower, capital expenditure was slightly higher, free cash flow was lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$291.0M
Capital spending and related asset purchases.
FCF margin
25.0%
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 | $5.9B | $1.9B | $329.0M | $1.6B | 27.0% |
| 2023-09-29 | $5.6B | $1.7B | $354.0M | $1.3B | 23.4% |
| 2023-12-31 | $6.4B | $1.6B | $434.0M | $1.2B | 18.5% |
| 2024-03-29 | $5.8B | $1.7B | $291.0M | $1.4B | 25.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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.
Capital Expenditure Reduction
Capital expenditure was lower than the preceding quarter, which contributed to the sequential increase in free cash flow and the improvement in the free cash flow margin.
This reduction in capital expenditure directly supported a higher free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, but operating cash flow was higher and capital expenditure was lower, resulting in higher free cash flow and an improved margin. The filing shows a decrease in trade accounts receivable and an increase in cash and equivalents compared to the end of the prior fiscal year.
Sequentially, revenue was lower, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the margin improved. Year over year, revenue was slightly lower, operating cash flow was lower, capital expenditure was slightly higher, free cash flow was lower, and the margin weakened.
Monitor trade accounts receivable, as the filing shows a decrease from the prior fiscal year-end, which may influence future cash conversion.