Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow improved markedly compared to the same quarter last year, while revenue was slightly lower than the immediately preceding quarter. The free cash flow margin strengthened relative to the year-ago period but weakened when compared to the prior quarter.
- Operating cash flow represented a higher proportion of revenue than in the year-ago quarter, and after deducting capital expenditure, the resulting free cash flow margin was higher than a year earlier. This indicates improved cash conversion efficiency relative to the prior year period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were markedly higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$447.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$649.4M
Cash generated by operations before capital spending.
CapEx
$201.5M
Capital spending and related asset purchases.
FCF margin
11.9%
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 | $3.9B | $573.4M | $172.0M | $401.4M | 10.4% |
| 2023-09-30 | $4.0B | $787.7M | $166.5M | $621.2M | 15.7% |
| 2023-12-31 | $3.9B | $852.5M | $262.6M | $589.9M | 15.0% |
| 2024-03-31 | $3.8B | $649.4M | $201.5M | $447.9M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 Improvement
Operating cash flow increased substantially compared to the prior year quarter, which was the strongest observable factor driving the higher free cash flow and free cash flow margin.
The higher operating cash flow directly supported improved free cash flow generation relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented a higher proportion of revenue than in the year-ago quarter, and after deducting capital expenditure, the resulting free cash flow margin was higher than a year earlier. This indicates improved cash conversion efficiency relative to the prior year period.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were markedly higher, and free cash flow margin improved.
Monitor the level of capital expenditure relative to operating cash flow, as its change influenced the free cash flow comparison between periods.