Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved from the prior quarter but weakened compared to a year earlier. Operating cash flow rose while revenue fell, leading to a higher free cash flow margin.
- Revenue was lower than the prior quarter, but operating cash flow was higher, resulting in a substantial increase in free cash flow margin. Capital expenditure remained relatively stable.
- Compared to the immediately preceding quarter, revenue declined while operating cash flow improved, driving a higher free cash flow and margin. Versus the same quarter one year earlier, revenue and operating cash flow were both lower, and capital expenditure was higher, leading to a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$613.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$621.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$534.5M
Capital spending and related asset purchases.
FCF margin
44.0%
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 | $848.3M | $437.1M | $487.0M | -$49.9M | -5.9% |
| 2023-09-30 | $1.2B | $454.6M | $504.1M | -$49.5M | -4.2% |
| 2023-12-31 | $2.0B | $624.4M | $533.1M | $91.2M | 4.5% |
| 2024-03-31 | $1.4B | $1.2B | $534.5M | $621.2M | 44.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 600.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Conversion
Operating cash flow increased significantly from the prior quarter while capital expenditure held steady, causing a sharp improvement in free cash flow margin.
The stronger cash generation relative to investment spending enhanced liquidity.
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, but operating cash flow was higher, resulting in a substantial increase in free cash flow margin. Capital expenditure remained relatively stable.
Compared to the immediately preceding quarter, revenue declined while operating cash flow improved, driving a higher free cash flow and margin. Versus the same quarter one year earlier, revenue and operating cash flow were both lower, and capital expenditure was higher, leading to a lower free cash flow and margin.
Monitor whether operating cash flow can be sustained given the decline in revenue.