Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both prior periods, but operating cash flow declined sequentially, leading to a lower free cash flow margin than the previous quarter, though slightly improved from a year ago. The filing notes efficient working capital deployment and an increase in same store sales versus the prior year.
- The current quarter's free cash flow margin was lower than the immediately preceding quarter but slightly higher than the same quarter one year earlier, reflecting a mixed cash conversion performance. Revenue was higher, while operating cash flow and free cash flow showed divergent trends relative to the two comparison periods.
- Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin. Versus the year-ago quarter, revenue, operating cash flow, and free cash flow were all higher, with a marginally improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$466.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$103.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$123.5M
Cash generated by operations before capital spending.
CapEx
$20.2M
Capital spending and related asset purchases.
FCF margin
9.5%
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 |
|---|---|---|---|---|---|
| 2023-03-26 | $1.0B | $114.7M | $19.0M | $95.7M | 9.3% |
| 2023-06-18 | $1.0B | $127.6M | $18.9M | $108.7M | 10.6% |
| 2023-09-10 | $1.0B | $179.8M | $21.3M | $158.5M | 15.4% |
| 2024-03-24 | $1.1B | $123.5M | $20.2M | $103.3M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Operating Cash Flow Decline
Operating cash flow decreased compared to the previous quarter despite higher revenue, indicating a shift in cash conversion efficiency. This was the most notable change among the key metrics.
The decline in operating cash flow drove the free cash flow margin lower sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The current quarter's free cash flow margin was lower than the immediately preceding quarter but slightly higher than the same quarter one year earlier, reflecting a mixed cash conversion performance. Revenue was higher, while operating cash flow and free cash flow showed divergent trends relative to the two comparison periods.
Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin. Versus the year-ago quarter, revenue, operating cash flow, and free cash flow were all higher, with a marginally improved margin.
Monitor the trend in operating cash flow given its sequential decline relative to revenue.