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 but higher than the same quarter last year. Free cash flow and its margin weakened sequentially but improved year-over-year.
- Operating cash flow as a percentage of revenue was lower than the prior quarter, leading to a lower free cash flow margin despite lower capital expenditure. Compared to the same quarter last year, operating cash flow conversion improved.
- Compared to the immediately preceding quarter, all cash flow metrics were lower. Compared to the same quarter one year earlier, all cash flow metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$292.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$475.0M
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $5.9B | $850.0M | $160.0M | $690.0M | 11.8% |
| 2023-09-30 | $5.9B | $1.1B | $228.0M | $913.0M | 15.5% |
| 2023-12-31 | $6.0B | $1.3B | $243.0M | $1.1B | 17.7% |
| 2024-03-31 | $5.9B | $475.0M | $183.0M | $292.0M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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
Operating cash flow decreased sequentially while revenue also decreased, resulting in a lower free cash flow. Year-over-year, operating cash flow increased.
The sequential decline in operating cash flow was the primary factor behind the weakened free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than the prior quarter, leading to a lower free cash flow margin despite lower capital expenditure. Compared to the same quarter last year, operating cash flow conversion improved.
Compared to the immediately preceding quarter, all cash flow metrics were lower. Compared to the same quarter one year earlier, all cash flow metrics were higher.
Monitor the free cash flow margin trend given its sequential decline.