Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter one year earlier. Free cash flow margin was stable compared to the year-ago period but weakened sequentially.
- Operating cash flow rose year-over-year but fell from the prior quarter, while capital expenditure decreased slightly sequentially and increased year-over-year. The resulting free cash flow and margin declined from the prior quarter yet remained consistent with the year-ago period.
- Compared with the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter one year earlier, all metrics were higher except capital expenditure which was also higher, and the margin was stable.
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
$414.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$611.1M
Cash generated by operations before capital spending.
CapEx
$196.9M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-06-30 | $4.0B | $611.1M | $196.9M | $414.2M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Higher revenue
Revenue was higher than both the prior quarter and the same quarter one year earlier, providing a larger base for cash generation.
The higher revenue contributed to improved free cash flow compared with the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose year-over-year but fell from the prior quarter, while capital expenditure decreased slightly sequentially and increased year-over-year. The resulting free cash flow and margin declined from the prior quarter yet remained consistent with the year-ago period.
Compared with the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter one year earlier, all metrics were higher except capital expenditure which was also higher, and the margin was stable.
The net debt to EBITDA ratio improved from the end of the prior year, as noted in the filing, and should be monitored for its ongoing trend.