Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, as capital expenditure exceeded operating cash flow. Compared with the prior quarter and the same quarter last year, the free cash flow position weakened.
- Cash conversion weakened as operating cash flow declined relative to revenue, while capital expenditure remained elevated, resulting in a more negative free cash flow margin.
- Sequentially, operating cash flow and capital expenditure both decreased, but the decline in operating cash flow was larger, making free cash flow more negative. Year over year, operating cash flow was lower and capital expenditure was higher, also widening the free cash flow deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$490.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$301.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$317.3M
Cash generated by operations before capital spending.
CapEx
$618.6M
Capital spending and related asset purchases.
FCF margin
-23.5%
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 | $1.3B | $352.3M | $576.5M | -$224.2M | -17.1% |
| 2023-09-30 | $1.6B | $836.5M | $553.7M | $282.8M | 17.3% |
| 2023-12-31 | $1.2B | $428.5M | $676.1M | -$247.6M | -21.4% |
| 2024-03-31 | $1.3B | $317.3M | $618.6M | -$301.3M | -23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -239.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 48.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure growth
Capital expenditure increased compared with the same quarter last year, while operating cash flow declined, widening the free cash flow deficit.
If capital spending continues to outpace operating cash flow, the company's reliance on external financing may increase, as noted in the filing's discussion of liquidity and capital resources.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow declined relative to revenue, while capital expenditure remained elevated, resulting in a more negative free cash flow margin.
Sequentially, operating cash flow and capital expenditure both decreased, but the decline in operating cash flow was larger, making free cash flow more negative. Year over year, operating cash flow was lower and capital expenditure was higher, also widening the free cash flow deficit.
Monitor the trend in operating cash flow, as the company's ability to internally fund capital expenditure is a key factor for liquidity.