Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, Danaher's free cash flow decreased compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow. The free cash flow margin also weakened, reflecting a decline in cash generation efficiency.
- Revenue was slightly lower than the year-ago quarter and down from the previous quarter. Operating cash flow declined more sharply, while capital expenditure also decreased, resulting in a lower free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$245.0M
Capital spending and related asset purchases.
FCF margin
18.4%
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 |
|---|---|---|---|---|---|
| 2024-06-28 | $5.7B | $1.4B | $287.0M | $1.1B | 19.7% |
| 2024-09-27 | $5.8B | $1.5B | $298.0M | $1.2B | 21.0% |
| 2024-12-31 | $6.5B | $2.0B | $516.0M | $1.5B | 23.0% |
| 2025-03-28 | $5.7B | $1.3B | $245.0M | $1.1B | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Decline in Operating Cash Flow
The primary driver of the lower free cash flow was a reduction in operating cash flow, which decreased from both the prior quarter and the year-ago period. Capital expenditure also declined but did not offset the drop in operating cash flow.
The weakened free cash flow margin indicates lower cash generation per dollar of revenue, which may affect liquidity flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the year-ago quarter and down from the previous quarter. Operating cash flow declined more sharply, while capital expenditure also decreased, resulting in a lower free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and the margin weakened.
Monitor changes in working capital items, particularly trade accounts receivable and inventories, as they impact cash conversion.