Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and higher than the year-ago quarter. Free cash flow margin weakened sequentially but improved year-over-year, and the company's cash balance decreased from the end of the prior fiscal year.
- Revenue was lower than the prior quarter, while operating cash flow declined more sharply, and capital expenditure also decreased. Free cash flow and its margin were lower than the preceding quarter but higher than the same quarter a year ago.
- Compared to the prior quarter, free cash flow was lower, driven by a larger drop in operating cash flow, partly offset by lower capital spending. Versus the year-ago quarter, free cash flow was higher, supported by both higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$359.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$534.0M
Cash generated by operations before capital spending.
CapEx
$175.0M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $3.6B | $714.0M | $351.0M | $363.0M | 10.1% |
| 2023-09-30 | $3.5B | -$408.0M | $295.0M | -$703.0M | -20.0% |
| 2023-12-31 | $4.3B | $1.3B | $232.0M | $1.1B | 26.0% |
| 2024-03-31 | $3.9B | $534.0M | $175.0M | $359.0M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 Trend
Operating cash flow weakened relative to revenue from the prior quarter, resulting in a lower free cash flow margin.
Continued weakening in operating cash flow could further compress free cash flow margins.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, while operating cash flow declined more sharply, and capital expenditure also decreased. Free cash flow and its margin were lower than the preceding quarter but higher than the same quarter a year ago.
Compared to the prior quarter, free cash flow was lower, driven by a larger drop in operating cash flow, partly offset by lower capital spending. Versus the year-ago quarter, free cash flow was higher, supported by both higher operating cash flow and lower capital expenditure.
Monitor the trend in operating cash flow relative to revenue, as it weakened sequentially despite a smaller revenue decline.