Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Danaher's free cash flow margin improved sequentially from the prior quarter but weakened compared to the same quarter last year. Operating cash flow grew from the prior quarter yet declined year-over-year, while capital expenditure was lower year-over-year.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than the preceding quarter but lower than the prior year, leading to a free cash flow that improved sequentially but declined year-over-year. The free cash flow margin reflected this pattern.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
21.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $6.4B | $1.6B | $434.0M | $1.2B | 18.5% |
| 2024-03-29 | $5.8B | $1.7B | $291.0M | $1.4B | 25.0% |
| 2024-06-28 | $5.7B | $1.4B | $287.0M | $1.1B | 19.7% |
| 2024-09-27 | $5.8B | $1.5B | $298.0M | $1.2B | 21.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 148.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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.
Year-over-year operating cash flow decline
Operating cash flow decreased compared to the same quarter last year, while revenue increased. This divergence reduced the free cash flow margin.
The lower operating cash flow relative to revenue constrained free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than the preceding quarter but lower than the prior year, leading to a free cash flow that improved sequentially but declined year-over-year. The free cash flow margin reflected this pattern.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
Monitor the trend in free cash flow margin, as it declined from the year-ago level despite higher revenue.