Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the current quarter, free cash flow improved significantly from the prior quarter, though it was slightly lower than the same quarter last year. The company's cash conversion remained strong, with operating cash flow exceeding revenue.
- Operating cash flow was slightly higher than revenue, resulting in a free cash flow margin above nine-tenths. Capital expenditure remained relatively stable compared to the previous quarter.
- Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, while revenue was stable. Versus the same quarter a year ago, revenue was higher but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$177.0M
Capital spending and related asset purchases.
FCF margin
93.5%
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 | $3.4B | $1.1B | $223.0M | $923.0M | 27.5% |
| 2023-09-30 | $3.9B | -$1.4B | $213.0M | -$1.6B | -40.4% |
| 2023-12-31 | $2.9B | -$238.0M | $177.0M | -$415.0M | -14.4% |
| 2024-03-31 | $2.9B | $2.9B | $177.0M | $2.7B | 93.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2001.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$570.0M | 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 Recovery
The primary driver of free cash flow was the substantial positive operating cash flow, which reversed the prior quarter's negative figure. This recovery allowed the company to generate strong free cash flow.
The improvement in operating cash flow directly enabled the high free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly higher than revenue, resulting in a free cash flow margin above nine-tenths. Capital expenditure remained relatively stable compared to the previous quarter.
Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, while revenue was stable. Versus the same quarter a year ago, revenue was higher but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin.
Monitor the variability of operating cash flow, as it swung from negative to positive between the two most recent quarters.