Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened versus both the prior quarter and the year-ago period, as operating cash flow declined and capital expenditure rose. Revenue was stable year-over-year and higher than the preceding quarter.
- Operating cash flow conversion weakened, as revenue growth did not translate into higher cash generation; the margin fell below prior levels.
- Compared with the preceding quarter, revenue rose while operating cash flow and free cash flow decreased, leading to a lower margin. Year-over-year, revenue was stable but operating cash flow and free cash flow were lower, with capital expenditure markedly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$284.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$335.6M
Cash generated by operations before capital spending.
CapEx
$50.8M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $1.9B | $302.1M | $55.9M | $246.2M | 13.1% |
| 2023-09-30 | $1.8B | $388.1M | $46.9M | $341.2M | 18.5% |
| 2023-12-31 | $1.8B | $354.0M | $36.3M | $317.7M | 18.1% |
| 2024-03-31 | $1.9B | $335.6M | $50.8M | $284.8M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $37.1M | 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 Decline
Operating cash flow declined as inventory reductions slowed and wage accruals became less favorable, while revenue remained stable.
Weakened cash conversion reduced free cash flow and compressed the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow conversion weakened, as revenue growth did not translate into higher cash generation; the margin fell below prior levels.
Compared with the preceding quarter, revenue rose while operating cash flow and free cash flow decreased, leading to a lower margin. Year-over-year, revenue was stable but operating cash flow and free cash flow were lower, with capital expenditure markedly higher.
Monitor the trend in capital expenditure, which increased notably from both prior periods and weighed on free cash flow.