Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sequentially as operating cash flow decreased while capital expenditure rose slightly, resulting in a narrower margin. Compared to the same quarter last year, operating cash flow was significantly lower, though revenue was slightly higher.
- Revenue was unchanged from the prior quarter, but operating cash flow declined, and capital expenditure increased, causing free cash flow to fall and the free cash flow margin to contract.
- Sequentially, free cash flow and margin both declined as operating cash flow weakened and capex grew. Year-over-year, operating cash flow was much lower despite a small revenue increase; capex and free cash flow comparisons are not available for the year-ago period.
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
$64.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$800.0M
Cash generated by operations before capital spending.
CapEx
$736.0M
Capital spending and related asset purchases.
FCF margin
0.6%
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 | $10.6B | $1.7B | n/a | n/a | n/a |
| 2024-03-31 | $10.8B | $464.0M | $714.0M | -$250.0M | -2.3% |
| 2024-06-30 | $10.9B | $836.0M | $723.0M | $113.0M | 1.0% |
| 2024-09-30 | $10.9B | $800.0M | $736.0M | $64.0M | 0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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.
Weaker Operating Cash Flow
Operating cash flow fell from the prior quarter while capital expenditure rose slightly, causing free cash flow to drop sharply. The free cash flow margin narrowed accordingly.
The decline in operating cash flow was the primary factor behind the sequential weakening of free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow declined, and capital expenditure increased, causing free cash flow to fall and the free cash flow margin to contract.
Sequentially, free cash flow and margin both declined as operating cash flow weakened and capex grew. Year-over-year, operating cash flow was much lower despite a small revenue increase; capex and free cash flow comparisons are not available for the year-ago period.
Monitor the trajectory of operating cash flow, which decreased from the prior quarter and was substantially below the year-ago level.