Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Operating cash flow declined sharply from the prior quarter, and free cash flow turned negative as capital expenditure exceeded operating cash flow.
- Operating cash flow as a proportion of revenue weakened compared to both the prior quarter and the year-ago quarter. Capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue improved slightly but operating cash flow was substantially lower. Compared to the same quarter last year, revenue was lower and operating cash flow was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$250.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$464.0M
Cash generated by operations before capital spending.
CapEx
$714.0M
Capital spending and related asset purchases.
FCF margin
-2.3%
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 | $11.4B | $1.3B | n/a | n/a | n/a |
| 2023-09-30 | $10.7B | $1.7B | n/a | n/a | n/a |
| 2023-12-31 | $10.6B | $1.7B | n/a | n/a | n/a |
| 2024-03-31 | $10.8B | $464.0M | $714.0M | -$250.0M | -2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -48.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 Exceeds Operating Cash Flow
Capital expenditure was higher than operating cash flow, leading to negative free cash flow. This represents a shift from the prior quarter when operating cash flow was substantially higher.
Free cash flow turned negative, and the free cash flow margin weakened compared to the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened compared to both the prior quarter and the year-ago quarter. Capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue improved slightly but operating cash flow was substantially lower. Compared to the same quarter last year, revenue was lower and operating cash flow was also lower.
Monitor the relationship between capital expenditure and operating cash flow, as capital expenditure exceeded operating cash flow in the current quarter.